Equity Pledge Debt Fund 821
Type: Debt
Target: $3,000,000
Annual Return: 7.75% - 8%
Min-invest Amount: $10,000
Duration: 6 - 12 Months
| Fund Type | Equity Pledge Debt Fund |
| Offering Amount | $3,000,000 U.S. Dollars |
| Estimated Return | 7.75% - 8.00% Annualized Return *1 |
| Investment Type | Equity Pledge Loan |
| Unit Price | $10,000 per Subscription Unit |
| Offering Date | March 2022 |
| Investment Horizon | 6 – 12 Months |
| Dividend Schedule | Prepay Before Per Period (6+3+3 Months) |
* 7.75% Annualized Return For Investment of 1-19 Units;
* 8.00% Annualized Return for investment above 20 Units.
- Developer purchased Lot58 for $3,100,000 in April 2019, and adjacent parking lot and the Air Right for 60-20 Woodside Avenue in the same month. The project land is worth in total $10,100,000. After combining the lots, developer will work on construction plan and pouring of concrete foundation.
- Developer expects the construction to last 28 months. After completion, the property would offer 78 residential units, including 54 regular units (35 one-bedrooms and 19 two-bedrooms) and 24 affordable units (15 one-bedrooms and 9 two-bedrooms), totaling 51,966 SF.
| Site Address | 40-22 61st St. Woodside, Queens, NY, 11377 |
| Site Area | Woodside, Queens, New York |
| Lot Size | Near 21,015 SF |
| Zoning | C1-3, R6A & R5B |
| Scalable Area | 51,966 SF |
| Building Size | 64,908 SF |
| Market Value Post-Completion | $10,600,000 (Based on Cushman & Wakefield appraisal report in July 2021) |
| Expected Dividend Calendar | ||||||
|---|---|---|---|---|---|---|
| Round of Dividend | Funding Amount | Dividend Date *1 | Counting Date | Ending Date | Dividend Period | Notes |
| First | $1,500,000 | No Later than 3/15/2022 | 3/1/2022 | 8/31/2022 | 6 Months | Pre-paid Dividend |
| $1,500,000 | No Later than 4/1/2022 | 3/15/2022 | 8/31/2022 | 5.5 Months | Pre-paid Dividend | |
| Second | No Later than 9/15/2022 | 9/1/2022 | 11/30/2022 *2 | 3 Months | Extension Option Owned by Developer | |
| Third | No Later than 12/15/2022 | 12/1/2022 | 2/28/2023 | 3 Months | Extension Option Owned by Developer | |
*1 In case of holidays and non-working days, the dividend date will be automatically postponed to the next working day.
*2 After the expiration of the first Dividend Period, the developer has 2 options to extend the borrowing by 6 months. If the developer chooses to extend, the investors will receive dividends at the same rate of return during the extension.
- As of February 2022, the developer has contributed all equity to fund the $10,100,000 acquisition of project land, building design plan, foundation work, and other soft costs.
- The developer will apply for construction loan from a commercial bank in the second quarter of 2022, to cover the construction cost. Based on the developer’s creditworthiness and experience, it may receive $24,000,000 in construction loan. On a cost basis, the project equity pledged to CrowdFunz 821 is worth over $10,600,000.
- Project is in Woodside, a transportation hub of Queens borough, most public transportation stations are within 5-min walking distance, including bus stations, subway stations, and LIRR.
- Woodside has seen a faster growth in the recent years. Local businesses and living facilities have been quickly improving, thanks to stable and growing income of residents. While the area has a higher population density than adjacent areas, more commercial and residential development projects have been started locally.
- The developer plans to use all proceeds from CrowdFunz 821 Fund to bridge the funding gap and finish building’s exterior wall structure.
- The developer expects to receive construction loan from a commercial bank in the third quarter of 2022, which will be used to retire CrowdFunz 821 Fund and cover further construction cost.
- The developer has completed multiple middle-large size commercial real estate development projects and has maintained a great reputation for its superb expertise and execution. Most of the developer’s projects are in Brooklyn and Queens.
- This project marks the first collaboration between CrowdFunz and the developer, and both parties look forward to establish a long-lasting relationship and creating value for our investors through a successful project.
Investment Structure of CrowdFunz 821 Fund
CAPITAL STACK
| Capital Stack | Percentage | |
|---|---|---|
| Mortgage Originated by Commercial Bank | $0 | 0% |
| Loan Issued by CrowdFunz 820 Fund | 3,000,000 | 22.05% |
| Equity Investment by Developer | 10,600,000 | 77.95% |
| Total Amount | $13,600,000 | 100.00% |
After CrowdFunz 821 Mezzanine Loan enters the capital stack:
- As of February 22nd, the developer has no loan position on the balance sheet.
- CrowdFunz 821 Fund has originated a total of $3,000,000 of mezzanine loan and holds second lien position. The loan is accounted for 22.05% of total capital.
- Developer has contributed $10,600,000 of equity investment and is accounted for 77.95% of total capital.
- CrowdFunz 821 Mezzanine Loan is secured by 100% project entity’s equity and developer’s unlimited personal guarantee.
FUND USAGE
The $3,000,000 of CrowdFunz 821 Mezzanine Loan will provide the developer with short-term liquidity and be used to finish building exterior work, before a construction loan from a commercial bank has been approved.The previous building structure had been demolished at the end of 2021, and the foundation is close to be finished.The building will become a residential property, with a total building area around 65,000 square feet. Land cost is $198/SF, construction cost is $362/SF, and total development cost is $618/SF.
| Use of CrowdFunz 821 Fund | ||
|---|---|---|
| Cost Item | Amount | Percentage |
| Land Acquisition Cost | $10,300,000 | 25.61% |
| Construction Cost | 23,530,000 | 58.50% |
| Above ground | 19,195,976 | 47.73% |
| Foundation and underground | 4,334,024 | 10.53% |
| Soft Cost and Financing Cost | 6,392,000 | 15.89% |
| Total | $40,222,000 | 100% |
* Data provided by Developer
Demographics in the Zip Code
| Zip Code 11377 | |
|---|---|
| Regional Population | 83,825 |
| Median Age | 40.5 |
| High School Education or above | 52.6% |
| Commute Area | Metropolitan Area(99.9%) |
| White/Blue Collar | 75.7%/24.3% |
| Family Median Income | $77,052 |
| Child-Bearing Family | 25.5% |
| Average Family Size | 2.67 |
| Housing rental ratio | 50% |
Woodside is in a prime location outside of Manhattan and is a key transportation hub connecting Long Island and New York City, which has attracted many residents.
Most residents in Woodside have family, and most of their spendings are for family lifestyle. 25.5% of families have at least one child.
Residents have a median age of 40.5 years. Most residents own houses for self-use. Local housing inventory remains low, but investment interests have pushed up market price of available listings.
Source： United States Zip Codes. Org. & Esri Zip Code Lookup。
Land Valuation Analysis of Underlying Property
* Comparable lands have an average sale price of $215/SF
Land Valuation:
After comparable analysis, we believe comparable lots with similar zoning should be worth $180/SF.
* Data Source: Appraisal; Calculated and Summarized by CrowdFunz Holding LLC.
Location
Project is in the center of Woodside, Queens, with convenient access to LIRR, Q18 and Q32 Bus lines, and Subway lines E,M,R and 7. It takes 10 and 25 minutes of driving to arrive at LGA and JFK Airport.
Transportation
- Subway: M，M，R，7(5-min Walk to station)
- LIRR: South and North bound
- Bus Line: Q18, Q32
- To Midtown Manhattan: About 10-min Drive
- To JFK Airport: About 25-min Drive
- To LGA Airport: About 15-min Drive
Nearby Schools
The project area has a strong network of kindergartens, primary schools, middle schools, and high schools for local education needs. Some schools offer adult specialty educations, for further degree and career advancement.
Living Facilities
The project area has convenient access to all transportation types and is full of small businesses servicing local families. The area has gradually become a real estate development hot spot over the years.
Recreations
Surrounding the project area are recreation parks, child day care, after-school tutoring organizations, sports centers, and museums.
Developer Company: AMPIERA GROUP
Developer Website: https://www.wandlgroup.com/
Prior Cooperation: None
Ampiera is headquartered in Queens, New York and specializes in real estate investment, development, and property management, with over 10 years of operation, and a core strategy to invest in, develop, and operate undervalued real estate assets. Ampiera has completed the Flushing building currently leased by Bank of China, and multiple commercial properties in Bay Ridge and Long Island City.
- The loan originated by CrowdFunz 821 Fund is a short-to-mid term mezzanine debt and was provided to the developer for short-term liquidity needs, given sufficient equity pledge value and creditworthiness of the borrower.
- CrowdFunz will continue to closely monitor the use of CrowdFunz 821 Fund by the developer and the progress of the project, to insure a timely exit.
- We believe the risk-return balance in CrowdFunz 821 Fund is rational, given an equity pledge value that is 2 times the value of CrowdFunz 821 Fund and developer’s unlimited personal guarantee.
- Based on clearly defined bilateral agreements, the loan originated by CrowdFunz 821 Fund can provide the developer with short-term liquidity to help the project proceed, and a great value-creation opportunity for the investors. The project has a financial risk lower than industry standard.
CrowdFunz 821 Project Rating
Subscription Agreement (Only available to accredited investors)
Appraisal (Only available to accredited investors)