• The property is in the Cypress Hills area of Brooklyn, near Highland Park. It is situated at the intersection of Van Siclen Avenue and Fulton Street, close to the J/Z subway station and major roads like Jackie Robinson Parkway and Atlantic Avenue.
• The developer purchased the land in February 2023 and began the construction works. The capping and copings of the building has been completed, and the Temporary Certificate of Occupancy is expected to be obtained in one year. The proposed completion of the project is in November 2025. The proposed property is an 8-story mixed-use building with 51 rentable residential units, 1,628 square feet community facility space, and 19 parking lots.

• According to the valuation report provided by Cushman & Wakefield, the current market value of the property is approximately $21.9 million before completion, with an estimated value of $38 million once the project is finished and fully leased.
• The capital structure includes a $5 million mortgage investment from CrowdFunz Fund 620, making up 22.83% of the capital. Popular Bank is providing a $13.5 million mortgage investment, accounting for 61.64% of the structure, while the developer's equity is around $3.4 million, representing 15.53% of the total.
• The current loan-to-value ratio is relatively high at 84.47%, but the developer has a strong financial background, with sufficient liquidity and debt repayment capacity to support this high-leverage strategy. For the joint mortgage investment with Popular Bank, the developer’s key person will provide a unlimited personal guarantee. The key person’s net worth is over $366 million.

Cypress Hills belongs to East New York/Starrett area, and it has a diverse population, including African American, Dominican, Puerto Rican, South Asian, Caribbean, and Caucasian residents.

In the broader East New York/Starrett City area, African Americans make up 49.80% of the population, followed by Latinx residents at 32.80%. Asians and Caucasians are minority groups, representing 7.20% and 2.40%, respectively.

Over the past decade, the median age of residents has decreased, largely due to the influx of new immigrants, with the current average age being around 35. Families with children make up 33.50% of the population, and the homeownership rate is low at 23.30%, with most residents renting. The area has experienced significant population growth over the last decade, leading to steady increases in both housing prices and rental rates.

* Source: NYU Furman Center and U.S. Census Bureau, in September 2024

Cypress Hills, is a densely populated region where real estate is primarily residential. More than half of the land in the area is zoned for various types of housing. In addition to residential buildings, the northwest and southern parts of the region feature older industrial complexes, while commercial spaces and retail stores are concentrated along major avenues. New real estate developments are also primarily situated along these main roads.

According to the appraisal report provided by Cushman & Wakefield, Brooklyn currently has a low vacancy rate for rental apartments, around 1.3%, indicating a tight supply and demand for rental housing. The proposed 8-story rental apartment building at the subject property, known for its affordability, meets the strong demand for affordable housing, especially for new immigrants. Its excellent transportation access also makes the property highly competitive in the local market, with positive expectations for stable and long-term rental income.

* Source: Appraisal Report provided by Cushman & Wakefield.

The proposed property will be an 8-story mixed-use building, featuring 51 rental units, 1 community facility, and 19 parking lots. The developer purchased the land in February 2023 and began the construction works. The capping and copings of the building has been completed, and the Temporary Certificate of Occupancy is expected to be obtained in one year. The proposed completion of the project is in November 2025.

According to the appraisal report provided by Cushman & Wakefield, the current market value of the property is approximately $21.9 million, with an estimated value of $38 million once the project is completed and fully leased. Based on the project's current progress, CrowdFunz believes that Cushman & Wakefield's valuation of $21.9 million, determined by using the Income Capitalization Approach, reflects the market value of the property in its unfinished state.

* Source: Appraisal Report provided by Cushman & Wakefield

Location

The project is in the Cypress Hills neighborhood of Brooklyn, New York City, near the green space of Highland Park, offering a pleasant and serene environment. The surrounding area consists of traditional local residential communities, with supermarkets, convenience stores, and other amenities within walking distance. It is just a few blocks from East New York, the regional center of Brooklyn.

Transportation

• Subway：J/Z Metro Lines
• Train: LIRR East New York
• To JFK Airport：5.7 Miles (25-minute driving)
• To LGA Airport：11.2 Miles (40-minute driving)

Schools

The Cypress Hills area falls under New York City's District 19, a traditional residential community with abundant educational resources, featuring a total of 36 different middle and elementary schools serving the district. Notable schools in the area include public elementary schools P.S. 65 and P.S. 108 Sal Abbracciamento, as well as the private elementary school The Fresh Creek School, all of which are considered quality educational institutions in the community.

Living Facilities

Cypress Hills is a traditional residential community in Brooklyn's East New York area, with development dating back to the mid-17th century. The local commercial area is well-established, primarily serving a population of Latinx and African American residents. The neighborhood is known for its numerous Jamaican-style restaurants.

Entertainment

The Cypress Hills area offers convenient access to libraries, community centers, and Highland Park for outdoor leisure. Residents can also visit the Gateway Center, a large shopping mall that opened in 2002, as a popular destination for shopping and dining. Since the area's rezoning in 2016, it has attracted several mid-to-high-end residential developments and new residents. This growth has brought a variety of fitness centers and recreational venues catering to younger consumers, enhancing the neighborhood’s appeal.

Developer Company: 2795 Fulton ST LLC.

• CrowdFunz Fund 620 provides financing for the short- to medium-term mortgage loan needed by the borrower. To mitigate investment risk, CrowdFunz is partnering with Popular Bank to jointly invest in the project's Special Purpose Vehicle (SPV). At the conclusion of the project, the developer will repay the mortgage loan by refinancing with a commercial bank or by using cash flow returns from other projects.
• The developer has a strong financial background. Although the project currently has a high loan-to-value (LTV) ratio of 84.47%, the developer's liquidity and debt repayment ability are sufficient to support the high-leverage strategy. For this joint mortgage loan investment with Popular Bank, the key individual from the developer’s team will provide a personal unlimited guarantee. This individual has a net worth exceeding $366 million, making the likelihood of malicious default low.
• As a result, CrowdFunz believes that the short-term debt investment of the Fund 620 carries relatively low and manageable risk, making it suitable for investors seeking fixed-income products.