Equity Pledge Debt Fund 846
Type: Debt
Target: $1,100,000
Annual Return: 8.50% - 8.75%
Min-invest Amount: $10,000
Duration: 6 – 24 Months
| Fund Type | Private Equity Fund |
| Offering Amount | $1,100,000 |
| 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 – 24 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 | 18-35 & 18-39 College Point Boulevard, Flushing, NY 11136 |
| Area | Flushing, Queens, New York |
| Lot Area | 5,000 Sqft |
| Building Area | 10,000 Sqft |
| Intended Use | 2 Condominium Units, 2 Commercial Units, 1 Community Center, and 2 Parking Lots |
| Expected Dividend Calendar | ||||||
|---|---|---|---|---|---|---|
| Round of Dividend | Dividend Date *1 | Counting Date | Ending Date | Dividend Period | Notes | |
| First | No Later than 4/15/2024 | 4/5/2024 | 10/4/2024 | 183 days | Prepaid Dividend *2 | |
| Second | No Later than 10/15/2024 | 10/5/2024 | 4/4/2025 | 182 days | Extension Option Owned by Developer *3< | |
| Third | No Later than 4/15/2025 | 4/5/2025 | 10/4/2025 | 183 days | Extension Option Owned by Developer | |
| Fourth | No Later than 10/15/2025 | 10/5/2025 | 4/4/2026 | 182 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 3 extension options, and investors will receive dividends accordingly at the same dividend rate.
- According to the Appraisal Report provided by BBG, the project lots are valued at $2,650,000 in total. After completion, the whole project could be valued at $6,275,000.
- The short-term loan provided by CrowdFunz Fund 846 is pledged by 100% ownership of the project entity, which is valued at $2,300,000. Developer’s key persons will also provide unlimited personal guarantee.
- Project is in College Point near Flushing and is 13-min drive away from LGA and 10-min bus away from Main Street subway station. The property is in a prime location and is meticulously designed to meet the needs of Chinese residents.
- Flushing is one of the biggest Chinese communities in the East Coast. Nearly 70% of residents are Chinese, while 71% were born outside of the US. According the government data, Flushing has the most foot traffic outside of Manhattan. As of February 2024, the median home price had reached $699,000, representing a 5.4% YoY increase.
- The borrower plans to use the short-to-medium term loan provided by CrowdFunz Fund 846 for construction and soft costs.
- Developer plans to refinance the loan provided by CrowdFunz Fund 846 with a construction loan from a commercial bank, or to use other sources of fund to repay the loan.
- As a family-operated business, Developer started from small-scale residential developments and has completed over 200,000 Square feet of commercial and residential properties. Developer gradually establishes its name and reputation among Chinese Developers in New York.
- In recent years, Developer had been focused on emerging areas such as Queens in New York. Developer had completed 3 projects in the Rego Park, knowing the demands of local and nearby markets.
Investment Structure of CrowdFunz 846 Fund
CAPITAL STACK
| Capital Stack | Ratio | |
|---|---|---|
| Mortgage from Commercial Bank | $1,800,000 | 34.61% |
| CrowdFunz Fund 846 Equity Pledge Loan | $1,100,000 | 21.15% |
| Developer Equity | $2,300,000 | 44.24% |
| Total | $5,200,000 | 100.00% |
- The current capital structure of the underlying project has a total loan amount of $1,800,000 from commercial bank, accounting for 34.61% of the total capital investment in the project.
- The developer's current equity value is $2,300,000, accounting for 44.24% of the total capital stack. The short-to-medium term loan provided by CrowdFunz Fund 846 accounts for 21.15% of the total capital stack in the project.
- Borrower had pledged 100% ownership of the project entity to Fund 846, and developer’s key persons will provide unlimited personal guarantee to the borrowing.
Demographics in the Zip Code
| Flushing/Whitestone | |
|---|---|
| Population | 242,765 |
| Median Age | 44 |
| Born in place | New York(38.90%)/ Out of State(56.70%) |
| Race | Asian(52.50%)/White(26.90%)/Latino(16.00%)/African American（2.20%） |
| Median Family Income | $64,610 |
| Child-bearing (Under 18) | 19.4% |
| Unemployment Rate | 12.77% |
Flushing is one of the fastest-growing areas in New York City over the past 20 years, attracting many Asian immigrants due to its convenient transportation and proximity to LGA Airport.
The population in this area is noticeably diverse, with Asian ethnicities being predominant among Flushing residents. Most residents in the area are middle-aged families with stable incomes, with an average age of around 44 years old. Most of them are hardworking immigrants.
Over the past decade, Flushing has undergone rapid and dynamic changes, with a large influx of new Asian residents contributing to a thriving rental market.
* Source: NYU Furman Center, and U.S. Census Bureau, in March 2024
Residential Property Market in Long Island City
According to the latest data from the American Community Survey, as of the end of 2021, in the Flushing/Whitestone, the proportion of owner-occupied homes is 52.20%, with condominiums being the predominant type of housing in the residential market. The total number of registered residential units is 98,610.
From 2006 to 2021, the median rental price in the project area increased from $1,630 per month to $1,770 per month, representing a significant growth of 8.6%. The residential rental vacancy rate is only 3.60%, better than the average level in Queens.
With many newly completed high-end condominium developments entering the market, residential prices in the Flushing area have further strengthened, with both house prices and median price per square foot significantly increasing.
During the 10-year period from 2010 to 2020, a total of 3,165 new residential units with four or more families were built in the Flushing area, with 84% being market-rate units and only 13% being affordable housing for low-income residents.
*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: $1,041/ft².
Comparable Condominium Listing
* According to the data from Zillow and PropertyShark, the average unit listing price of comparable condominium units for sale is: $1,165/ft².
Comparable Valuation Analysis
* Source: Appraisal Report provided by BBG.
Location
The project is conveniently located with excellent transportation access in all directions. Situated in the vicinity, public buses can reach Line 7 subway station and Long Island Railroad station within 10 minutes, with a 20-minute train ride to Midtown Manhattan. Driving to LaGuardia Airport takes only 8 minutes.
Transportation
- Subway：Metro Line 7
- To Midtown: 20-min driving distance
- To JFK Airport：25-min driving distance
- To LGA Airport：8-min driving distance
Schools
The project is in the heart of Flushing, where there is a well-established infrastructure of educational institutions. Several elementary, middle, and high schools are situated within the area, catering to children's educational needs.
Living Facilities
The area encompasses various Chinese and Korean supermarkets, offering a wide range of Chinese and Korean cuisine as well as fast food options. There are also large shopping centers nearby to meet the shopping needs for daily dining and living.
Recreations
The project is surrounded by a variety of museums, sports arenas, and entertainment venues. The New York Hall of Science, New York Badminton Center, USTA Billie Jean King National Tennis Center, Queens Museum, Queens Wildlife Center, and Citi Field are all within proximity.
Developer Company: CKZ Realty LLC.
Developer Website: https://www.greatstoneny.com/
Prior Cooperation: CrowdFunz Fund 804 / CrowdFunz Fund 807 / CrowdFunz Fund 809 / CrowdFunz Fund 812 / CrowdFunz Fund 818 / CrowdFunz Fund 822 / CrowdFunz Fund 823 / CrowdFunz Fund 617 / CrowdFunz Fund 827
- The short-to-mid term loan provided by CrowdFunz Fund 846 will provide Developer with liquidity during the initial phase of construction. Developer plans to refinance with a commercial bank or use the proceeds to repay the loan.
- The borrower of CrowdFunz Fund 846 has good reputation and credit history. The equity pledged for the loan is worth more than 2 times of the loan amount originated by Fund 846, and Developer’s key persons 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 846 has controllable risks and a low probability of default, making Fund 846 a feasible real estate investment opportunity for retail investors.
CrowdFunz 846 Project Rating
Subscription Agreement (Only available to accredited investors)
Appraisal (Only available to accredited investors)