Equity Pledge Debt Fund 845
Type: Debt
Target: $2,000,000
Annual Return: 8.50% - 8.75%
Min-invest Amount: $10,000
Duration: 6 – 18 Months
| Fund Type | Private Equity Fund |
| Offering Amount | $2,000,000 |
| Estimated Return | 8.50 – 8.75% Annualized Return*1 |
| Investment Type | Equity Pledge Loan |
| Unit Price | $10,000 per Subscription Unit |
| Offering Date | March 2024 |
| Investment Timeline | 6 – 18 Months*2 |
| Dividend Schedule | Prepaid per 6 Months*3 |
*1 8.50% Annualized Return for Investment of 1-19 Units; 8.75% Annualized Return for Investment above 20 Units.
*2 Investors will receive a minimum of 6 months of dividend; dividends will be calculated in terms of days till Borrower repays the loan.
*3 After the first dividend period, Borrower owns 2 extension options, and investors will receive dividends accordingly at the same dividend rate.
- Project is in the prime area of Astoria, adjacent to the quick-developing Long Island City. Residents can easily commute between Queens and Manhattan. In the past 10 years, real estate value increased significantly due to its convenient public transit and gentrification.
- Developer acquired the lot for $21,000,000 in October 2023, and had filed for demolition of the existing building. Construction of the new property is expected to finish in the first quarter of 2026. Developer plans to build a mixed-use building with 92 condominium units, 2 commercial units and 26 parking lots.
| Address | 2101-2119 31st Street, Astoria, NY 11105 |
| Area | Astoria, Queens, New York |
| Lot Area | 18,753 Sqft |
| Building Area | 65,427 Sqft |
| Intended Use | 92 Condominium units, 2 commercial units, 26 parking spots |
| Construction Time | 26 Months |
| Expected Dividend Calendar | ||||||
|---|---|---|---|---|---|---|
| Round of Dividend | Dividend Date *1 | Counting Date | Ending Date | Dividend Period | Notes | |
| First | No Later than 03/22/2024 | 03/08/2024 | 09/07/2024 | 184 days | Prepaid Dividend *2 | |
| Second | No Later than 09/22/2024 | 09/08/2024 | 03/07/2025 | 181 days | Extension Option Owned by Developer *3< | |
| Third | No Later than 03/22/2025 | 03/08/2025 | 09/07/2025 | 184 days | 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 Investors will receive a minimum of 6 months of dividend; dividends will be calculated in terms of days till Borrower repays the loan.
*3 After the first dividend period, Borrower owns 2 extension options, and investors will receive dividends accordingly at the same dividend rate.
- According to the Appraisal Report provided by Colliers International in May 2023, the land was valued at $21,000,000, and the property could be valued at $110,000,000 when completed.
- The short-to-medium term loan provided by CrowdFunz Fund 845 is pledged by 100% ownership of the project entity, which is valued at $13,500,000 and is more than 6 times the loan amount. Developer’s key persons will also provide unlimited personal guarantee.
- Astoria is one of the quickest growing communities in Queens due to its proximity to Long Island City and developed public transit. Multiple bus and subway lines are within walking distance to the project, granting easy travel to Manhattan, and other areas in Queens. Driving to LGA and JFK Airports only takes 10 and 25 minutes.
- Astoria is one subway station away from Long Island City. Its population density is approaching that of prime neighborhoods in Manhattan. Residential properties are comparatively undervalued and have huge growth potential.
- The borrower plans to use the loan provided by CrowdFunz Fund 845 for the construction and other soft costs.
- Developer plans to use the construction loan offered by a commercial bank or use the proceeds of sales from other projects to repay the loan originated by Fund 845.
- Developer has over 15 years of experience in real estate development, management, and sales in New York and China. The company had completed 5 projects in New York and has 3 ongoing projects.
- Developer had collaborated with CrowdFunz for multiple times, including Fund 830 (Funded), Fund 834 (Funded), and Fund 837 (Repaid). The developer has shown its development strength and good reputation to CrowdFunz investors. Two parties hope to create value for our investors through the fourth cooperation.
Investment Structure of CrowdFunz 844 Fund
CAPITAL STACK
| Capital Stack | Ratio | |
|---|---|---|
| Construction Loan | $12,600,000.00 | 44.84% |
| CrowdFunz Fund 845 Equity Pledge Loan | $2,000,000 | 7.12% |
| Developer Equity | $13,500,000.00 | 48.04% |
| Total | $28,100,000 | 100.00% |
- The $12,600,000 of land loan is accounted for 44.84% in the capital stack.
- Developer had contributed $13,500,000 of equity, which is accounted for 48.04% in the capital stack and 6 times the loan amount originated by CrowdFunz Fund 845. The short-to-medium term loan provided by CrowdFunz Fund 845 is accounted for 7.12% in the capital stack.
- Borrower will pledge 100% ownership of the project entity to Fund 845, and developer’s key persons will provide unlimited personal guarantee to the borrowing.
Demographics in the Zip Code
| Long Island City/Astoria | |
|---|---|
| Population | 156,981 |
| Median Age | 34 |
| Born in place | New York(42.70%)/ Out of State(20.20%)/ Out of the U.S.(37.10%) |
| Race | Asian(15.00%)/White(47.60%)/Latino(27.90%)/African American（4.70%） |
| Median Family Income | $78,030 |
| Child-bearing (Under 18) | 14.9% |
| Unemployment Rate | 13.06% |
Long Island City and Astoria have developed public transit and have become a popular destination for new developments. As more residents and corporates move into the area, it has become one of the best places to live in or invest in.
Residents are young and diverse, as most have stable and high-paying jobs.
The median age of residents is 34; 14.9% of families have a child under 18 years of old. Most residents rent, but in recent years more condo apartments are being built.
* Source: NYU Furman Center, and U.S. Census Bureau, in February 2024
Residential Property Market in Long Island City
According to the data compiled by American Community Survey, as of the end of 2021, 18.9% of the residents in Long Island City and Astoria purchased home to live in. There are 95,762 homes registered, and the vacancy rate is only 3.3%, which is higher than Queens average.
In recent years, 2-4 family units are the best selling, followed by condominiums. 134 condominium units were sold in 2022.
As more mid-to-luxury condominium developments enter the market, house price in Long Island City has been steadily increasing. The median price of single-family houses was $995,000; the median price of condominiums was $612,500 as of the end of 2022.
According to the Appraisal Report provided by Colliers International, New York City government had processed nearly 250 rezonings in Astoria since 2021, making the area near East River prime for residential developments. The city is planning to build more Ferry sites for offer residents more commute options.
*Source: NYU Furman Center, in February 2024.
Comparable Condominium Sold
* According to the data from Zillow and PropertyShark, the average unit sale price of comparable condominium units sold is: $1,257/ft².
Comparable Condominium Listing
* According to the data from Zillow and PropertyShark, the average unit listing price of comparable condominium units for sale is: $1,269.57/ft².
Comparable Valuation Analysis
* Source: Appraisal Report provided by CBRE.
Location
The property is in the prime area of Astoria and is surrounded by well-developed public transit, including N and W subway lines and multiple bus lines. Driving to LGA and JFK airports takes only 10 minutes and 25 minutes.
Transportation
- Subway：N、W (5-minute walk)
- To Midtown: 15-minute subway
- To JFK Airport：25-minute driving
- To LGA Airport：9-minute driving
Schools
Astoria has established education system that includes elementary schools, middle school, and high school, to meet education needs. Adult schools are also available for professionals who are looking for expanding their careers.
Living Facilities
Astoria has sample living facilities like restaurants and supermarkets to support all needs of diverse residents. Most residential units of rental and Co-op.
Recreations
Local entertainment venues include parks, gyms, and museums that are all within walking distance.
Developer Company: FBL Development.
Developer Website: http://www.fbldevelopment.com/
Prior Cooperation: CrowdFunz Fund 830 / CrowdFunz Fund 834 / CrowdFunz Fund 837
The development team is led by two new Chinese developers in New York. The team has more than 15 years of experience in real estate development in the New York market, and the company has completed 5 properties in Queens, New York, being active on adding market footprints.
In the past 15 years, the development team has formed its own full-cycle development management and has been continuously improving the development and cost management of its projects, expanding its local business steadily.
- The short-to-medium term loan provided by CrowdFunz Fund 845 will provide Developer with liquidity during the initial phase of construction. Developer plans to use the construction loan offered by a commercial bank or use the proceeds of sales from other projects to repay the loan originated by Fund 845.
- The borrower of CrowdFunz Fund 844 has reputation and credit history. The equity pledged for the loan is worth more than 6 times of the loan amount originated by Fund 845, and Developer will provide unlimited personal guarantee.
- CrowdFunz believes that under the loan agreement with clear legal rights and obligations, the short-term debt invested by Fund 845 has controllable risks and a low probability of default, making Fund 845 a feasible real estate investment opportunity for retail investors.
CrowdFunz 845 Project Rating
Subscription Agreement (Only available to accredited investors)
Appraisal (Only available to accredited investors)