Equity Pledge Debt Fund 851
Type: Debt
Target: $3,500,000
Annual Return: 8.25% - 8.50%
Min-invest Amount: $10,000
Duration: 6 – 24 Months
| Fund Type | Private Equity Fund |
| Offering Amount | $3,500,000 |
| Estimated Return | 8.25 – 8.50% Annualized Return*1 |
| Investment Type | Equity Pledge Loan |
| Unit Price | $10,000 per Subscription Unit |
| Offering Date | January 2025 |
| Investment Timeline | 6 – 24 Months*2 |
| Dividend Schedule | Prepaid Every 6 Month*3 |
*1 8.25% Annualized Return for Investment of 1-19 Units; 8.50% 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 3 extension options, and investors will receive dividends accordingly at the same dividend rate.
- The underlying property is in the Queens neighborhood of Kew Gardens, near the busy thoroughfare of Queens Boulevard, as well as I-678 and the Grand Central Parkway. Kew Gardens has been one of the fastest-growing communities in Queens over the past decade, offering convenient public transport and facilities that easily connect it to Manhattan, Queens, and Long Island.
- Originally planned as an 8-story mixed-use rental apartment building, Borrower expects to expand the building to 12 stories following the enactment of a new zoning reorganization bill in 2024. This expansion will add 20 rental units to the completed 8-story mixed-use rental apartment building which contains 3 commercial spaces and 51 rental apartments. As of October 2024, Borrower had completed the construction of the original 8 stories and received a Certificate of Occupancy in the same month. Official leasing began early in 2024, and the rental apartments currently have a 100% occupancy rate.
| Address | 81-07 Kew Gardens Rd, Queens, NY 11415 |
| Area | Kew Gardens, Queens, New York |
| Lot Area | 7,816 Sqft |
| Max FAR | 55,591 Sqft |
| Intended Use | 71 Condominium Units, 3 Commercial Units |
| Expected Dividend Calendar | |||||||
|---|---|---|---|---|---|---|---|
| Round of Dividend | Phase | Amount | Dividend Date *1 | Counting Date | Ending Date | Dividend Period | Notes |
| First | First | $1,500,000 | No Later Than 1/31/2025 | 1/17/2025 | 7/16/2025 | 181 Days | Prepaid Dividend*2 |
| Second | $1,000,000 | No Later Than 2/28/2025 | 2/17/2025 | 7/16/2025 | 150 Days | Prepaid Dividend | |
| Third | $1,000,000 | No Later Than 3/31/2025 | 3/17/2025 | 7/16/2025 | 122 Days | Prepaid Dividend | |
| Second | - | - | No Later Than 7/31/2025 | 7/17/2025 | 1/16/2026 | 184 Days | Extension Option Owned by Developer *3 |
| Third | - | - | No Later Than 1/31/2026 | 1/17/2026 | 7/16/2026 | 182 Days | Extension Option Owned by Developer |
| Fourth | - | - | No Later Than 7/31/2026 | 7/17/2026 | 1/16/2027 | 184 Days | Extension Option Owned by Developer |
*1 8.25% Annualized Return for Investment of 1-19 Units; 8.50% 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 3 extension options, and investors will receive dividends accordingly at the same dividend rate.
- Borrower will use the proceeds from CrowdFunz Fund 851 for the expansion construction of floors 9 to 12 of the underlying property. The loan will cover the costs related to labor and materials, helping to ensure that the project is successfully completed by 2027.
- CrowdFunz Fund 851 will provide a total of $3,500,000 in equity pledge loans for the underlying project. Currently, the project is supported by commercial bank loans in total of $23,000,000 and $7,000,000 of equity contribution from Borrower, which is double the loan amount originated by Fund 851. Additionally, the key persons of Borrower will provide unlimited personal guarantees for this borrowing.
- Situated near major transportation arteries such as Queens Boulevard and the I-678 interstate highway, the property offers excellent connectivity, being close to Forest Hills and only about an eight-minute drive to Flushing. Additionally, residents can walk to the LIRR station in five minutes and reach Midtown Manhattan's Penn Station in just 15 minutes.
- Borrower plans to use the loan provided by the Fund 851 for labor and materials costs as well as some soft costs, associated with the expansion construction of the property's building. As of January 2025, Borrower had completed the originally planned 8-story building and began officially leasing at the beginning of 2024, with a current 100% occupancy rate in the rental apartments.
- Borrower anticipates that once the expansion is successfully completed, it will repay the loan through refinancing obtained from commercial banks or using cash flow returns from other projects it owns.
- Borrower has over 15 years of investment experience in the New York real estate market as well as extensive development experience in China. In recent years, Borrower has been actively expanding into the New York local market, having completed five development projects in New York City, with four additional projects currently underway.
- CrowdFunz Fund 851 represents the fifth cooperation, following Fund 830, 834, 837, and Fund 845. Both parties aim to use this cooperation to assist the developers in completing their development plans, and to create value for investors.
Capital Structure of CrowdFunz Fund 851
Capital Stack
| Capital Stack | Percentage | ||
|---|---|---|---|
| Commercial Bank Mortgage | $23,000,000 | 68.66% | |
| CrowdFunz Fund 851 Equity Pledge Loan | $3,500,000 | 10.45% | |
| Equity Contribution | $7,000,000 | 20.90% | |
| Total Capital | $33,500,000 | 100.00% | |
- Based on the valuation report provided by Colliers International in 2024 for the unexpanded project, once the rental apartments are stably leased, the market value of the property is estimated at approximately $42,050,000. With the planned expansion of 20 additional rental units on floors 9-12, the market value of these units is estimated to be around $5,472,000. Thus, upon completion of the expansion, the project's estimated market value would be approximately $47,522,000.
- The total cost of the project is $33,500,000. Of this, the $3,500,000 equity pledge loan provided by CrowdFunz Fund 851 represents about 10.45% of the total capital invested; the commercial bank mortgage is in total of $23,000,000, making up 68.66% of the capital; and Borrower’s equity contribution in the project is about $7,000,000, accounting for 20.90% of the total investment.
- The key persons of Borrower will provide unlimited personal guarantees, committing to timely principal and interest payments to the fund. This additional security measure underlines the fund's cautious approach in safeguarding its investments and ensuring compliance and commitment from the borrower.
Demographics in Zip Code Area
| Kew Gardens/Woodhaven | |
|---|---|
| Population | 136,313 |
| Median Age | 39.10 |
| Born in | New York(42.40%)/ Out of the U.S(50.70%) |
| Race | Latino(43.20%)/ Asian(22.60%)/ Caucasian(17.30%)/ African American(5.00%) |
| Median Family Income | $84,950 |
| Child-bearing (Under 18) | 30.90% |
| Unemployment Rate | 4.80% |
Kew Gardens is a region that has seen rapid development over the last decade. It features convenient transportation options and is filled with a variety of retail and dining options catering to the everyday needs of residents, with an increasing number of stores targeting the Asian community.
The demographic profile of the area shows significant racial diversity, with 42.40% of the population being Hispanic, 22.60% Asian, 17.30% White, and 5.00% African American. 45% of residents use public transit to commute.
Residents in Kew Gardens are predominantly middle-aged families with stable incomes, with an average age of around 39 years. Families with children make up 30.90% of the community, with a homeownership rate of 51.80%. The influx of New Yorkers returning to the city for work in the past two years has heated up the rental market, making it a vibrant area for residential investment, particularly for rental properties.
* Source: NYU Furman Center, and U.S. Census Bureau, in January 2025.
Residential Market Trend in Kew Gardens
Kew Gardens in Queens, New York, has long been a densely populated, traditional residential community, favored by airline and airport personnel due to its convenience and proximity to JFK International Airport. The residential units in the community are primarily single-family homes, rental apartments, and cooperative apartments (Co-Ops). Over the past five years, there has been an increase in the number of condominiums and rental apartments being developed in the area.
In comparison to many other areas in New York, Kew Gardens features relatively newer condominiums and rental apartments that are in high demand. Most inventory on the market tends to be older co-ops, but the price per square foot in Kew Gardens is more attractive compared to other parts of Queens. The residential mix in the area is dominated by smaller apartments, and the supply of single-family homes has been particularly tight in recent years.
According to data published by Apartments.com in January 2025, the current average rent for apartments in Kew Gardens is around $2,000 per month. The rental prices in 2024 were very stable, and as of January 2025, the average monthly rent for apartments has only increased by $16 compared to the same period last year.
* Source: Apartments.com; Rental Market Trends, Kew Gardens, NY.
Comparable Rental Units Listing
* According to data compiled on Zillow and Street Easy, the average monthly rent of comparable rental units is $3.43/ft²/month.
Comparable Commercial Units for Lease
* According to public data on LoopNet, the average unit lease price for comparable commercial units is $66.5/ft²/Yr.
Valuation Analysis
Based on the valuation report provided by Colliers International in 2024, the property before expansion has a projected market value of approximately $42,050,000 once fully leased. Following the planned expansion of the additional 20 rental units on floors 9-10, these units are expected to add approximately $5,472,000 to the property's market value, bringing the total estimated market value to $47,522,000 after the expansion is complete.
CrowdFunz Fund 851 has opted for a more conservative cost valuation approach to assess the project’s value and capital structure. The total estimated cost of the project stands at $33,500,000. This includes $28,350,000 for the initially planned construction of floors 1-8 and an estimated $5,150,000 for the proposed construction of floors 9-12.
CrowdFunz Fund 851 considers this cost valuation method, which assesses the property's value at $33,500,000, to be aligned with the actual value of the project and consistent with the standards required for approving construction loans by the fund.
* Source: Cost data provided by borrower.
Location
The underlying project is in Kew Gardens, Queens. It boasts exceptional connectivity, being just a 2-minute walk from the F/E subway lines and a 5-minute drive to the LIRR station, with a 15-minute train ride placing residents directly in Manhattan. Situated near major transportation routes including the I-678 and Queens Boulevard, residents have easy walking access to the core commercial district of Queens, where they can enjoy shopping, entertainment, and various lifestyle amenities. This strategic location and rich array of local services make the project highly appealing for potential residents, emphasizing its suitability for investment focused on residential or mixed-use developments.
Transportation
- Subway: E/F
- Train: LIRR
- To JFK： 5.6 miles (15-minute driving)
- To LGA: 4.6 miles (15-minute driving)
School
Both Kew Gardens and Forest Hills are in the well-known School District 28, which includes 72 public and private schools, ranging from elementary to high school levels.
Living Facilities
As a vibrant community, Kew Gardens has attracted many Chinese homebuyers and investors, for its proximity to Asian restaurants and other living facilities.
Entertainment
Kew Gardens is near endless entertainment sites such as libraries, art and science museums, and US Open stadiums, perfectly designed for families.
Developer Company: FBL Development.
Developer Website: https://www.fbldevelopment.com/
Prior Cooperation: CrowdFunz Fund 830 / CrowdFunz Fund 834 / CrowdFunz Fund 837 / CrowdFunz Fund 845
- CrowdFunz Fund 851 has provided a short-to-mid term construction loan to Borrower for the expansion of floors 9 to 12 of the underlying property building, covering costs associated with labor and materials. The borrower plans to repay the loan issued by the Fund 851 through refinancing obtained from commercial banks or using the cash flows from their other projects once the expansion is completed.
- The underlying project of Fund 851 has already commenced leasing activities, and the rental situation is favorable with stable cash flows. As of January 2025, the borrower had completed the originally planned 8-story building, with leasing activities having started in early 2024. The current occupancy rate for the rental apartments is 100%. Upon completion of the expansion project, the strong demand in the local housing rental market is expected to support a positive market outlook for the newly completed rental units.
- The property is in the core area of Kew Gardens, Queens, a traditional residential community in Queens, adjacent to major transport routes, and has been one of the fastest-developing communities in Queens over the past decade.
- Given these favorable conditions, CrowdFunz considers the loan provided by Fund 851 to be of low default risk, making it suitable for investors seeking fixed-income products.
CrowdFunz 851 Project Rating
Subscription Agreement (Only available to accredited investors)
Appraisal (Only available to accredited investors)