Equity Pledge Debt Fund 849 Phase 2
Type: Debt
Target: $8,000,000
Annual Return: 8.15% - 8.40%
Min-invest Amount: $10,000
Duration: 12 – 36 Months
| Fund Type | Private Equity Fund |
| Offering Amount | $8,000,000 |
| Estimated Return | 8.15 – 8.40% Annualized Return*1 |
| Investment Type | Equity Pledge Loan |
| Unit Price | $10,000 per Subscription Unit |
| Offering Date | Oct 2025 |
| Investment Timeline | 12 – 36 Months*2 |
| Dividend Schedule | Prepaid per 6 Months*3 |
*1 8.15% Annualized Return for Investment of 1-19 Units; 8.40% Annualized Return for Investment above 20 Units.
*2 Investors will receive a minimum of 12 months of dividend; dividends will be calculated in terms of days till Borrower repays the loan.
*3 After the second dividend period, Borrower owns 4 extension options, and investors will receive dividends accordingly at the same dividend rate; if the fourth extension option is executed; investors will receive extra 0.25% dividend rate.
- The project is in Prospect Heights, Brooklyn, New York City. It is adjacent to the downtown Brooklyn and Brooklyn Heights areas. Prospect Heights is a rapidly developing community with beautiful surroundings. In recent years, many new residential properties have emerged in the area to meet the growing housing demands.
- The projected property is a 9-story mixed-use building containing 132 condominiums, 20,000 square feet retail and commercial space, and 76 parking lots. The construction began in late 2023, with the demolition of existing structures already completed and foundation work nearly finished. The project has successfully filed the Condominium Offering Plan, and the completion is expected in the end of 2027.
| Address | 757 Flatbush Ave, Brooklyn, NY 11228 |
| Area | Prospect Heights, Brooklyn, New York |
| Lot Area | 40,000 Sqft |
| Intended Use | 132 Condominium Units, 3,366 Sqft Retail Space, 76 Parking Spots |
| Expected Dividend Calendar | |||||||
|---|---|---|---|---|---|---|---|
| Round of Dividend | Batch*1 | Amount | Dividend Date*2 | Counting Date | Ending Date | Dividend Period | Notes |
| First | First | $2,000,000 | No Later than 10/31/2025 |
10/20/2025 | 4/19/2026 | 182 Days | Prepaid Dividend*3 |
| Second | $2,000,000 | No Later than 11/30/2025 |
11/20/2025 | 4/19/2026 | 151 Days | Prepaid Dividend | |
| Third | $2,000,000 | No Later than 12/31/2025 |
12/20/2025 | 4/19/2026 | 121 Days | Prepaid Dividend | |
| Fourth | $2,000,000 | No Later than 1/31/2026 |
1/20/2026 | 4/19/2026 | 90 Days | Prepaid Dividend | |
| Second | - | - | No Later than 4/31/2026 |
4/20/2026 | 10/19/2026 | 183 Days | Prepaid Dividend |
| Third | - | - | No Later than 10/31/2026 |
10/20/2026 | 4/19/2027 | 182 Days | Extension Option*4 Owned by Borrower |
| Fourth | - | - | No Later than 4/31/2027 |
4/20/2027 | 10/19/2027 | 183 Days | Extension Option Owned by Borrower |
| Fifth | - | - | No Later than 10/31/2027 |
10/20/2027 | 4/19/2028 | 183 Days | Extension Option Owned by Borrower |
| Sixth | - | - | No Later than 4/31/2028 |
4/20/2028 | 10/19/2028 | 183 Days | Extension Option Owned by Borrower |
*1 Funding amount of different investment phases could be varied based on construction progress;
*2 In case of holidays and non-working days, the dividend date will be automatically postponed to the next working day;
*3 Investors will receive a minimum of 12 months of dividend; dividends will be calculated in terms of days till Borrower repays the loan;
*4 After the second dividend period, Borrower owns 4 extension options, and investors will receive dividends accordingly at the same dividend rate. If the fourth extension option is executed, investors will receive extra 0.25% dividend rate.
- According to the appraisal provided by Marshall & Stevens, the current land value is approximately $26,310,000, and the completed property value is around $107,380,000. Based on the cost estimates provided by the financiers and commercial banks, considering increased costs from inflation and tariffs, the completed property value is adjusted to $112,188,889.
- The loan issued by CrowdFunz Fund 849 will use 100% equity of the project entity as collateral. The equity contribution is about $29,188,889. Additionally, the key individual will provide an unlimited personal guarantee for this loan.
- The project property is in Prospect Heights, Brooklyn, New York City, near Downtown Brooklyn and Lower Manhattan. It has convenient transportation, being a 2-minute walking distance from the Q subway line station.
- As Brooklyn is the most densely populated borough of New York City, the development momentum of Downtown Brooklyn and Park Slope is strong. New real estate development projects are gradually extending south along the subway lines. Areas like Prospect Heights and surrounding communities are developing rapidly, with new residential projects emerging to meet the market demand of local homebuyers.
- The borrower plans to use the loan entirely for the initial construction costs including excavation and other construction expenses, as well as part of the soft costs.
- The borrower expects to repay the loan from the CrowdFunz Fund 849 by using the sales proceeds of condominiums or from the cash flows of other projects that the borrower owns.
- The developer demonstrates excellent cash flow management, strict control over construction progress, and outstanding cost management, making them prominent among local Chinese real estate developers. Previous cooperations with CrowdFunz include fund 604, 805, 826, 819, 828, 832 and 849 Phase I.
Capital Structure of CrowdFunz Fund 849 Phase II
Capital Stack
| Capital Stack | Percentage | ||
|---|---|---|---|
| Land Loan | $75,000,000 | 66.85% | |
| CrowdFunz Fund 849 Phase II | $8,000,000 | 7.13% | |
| Developer Equity | $29,188,889 | 26.02% | |
| Total | $112,188,889 | 100.00% | |
- According to the third-party appraisal report provided by Marshall & Stevens, the current land value of the subject property is approximately $26,310,000. Based on cost projections provided by the borrower and the construction lender, the cost basis property value upon completion is estimated at $112,188,889.
- In the capital structure of this project, the construction loan originated by the commercial bank is in total of $75,000,000, accounting for 66.85% of total capital; the loan provided by CrowdFunz Fund 849 Phase II is in total of $8,000,000, representing 7.13%. The borrower's current equity contribution is $29,188,889, or 26.02% of the total. The project’s loan-to-cost (LTC) ratio is 73.98%, in line with industry averages.
- The loan provided by CrowdFunz Fund 849 Phase II is secured by a 100% equity pledge in the property-holding entity. In addition, the key person of Borrower will provide a personal guarantee, committing to timely repayment of both principal and interest. In the event of default, CrowdFunz will pursue legal remedies against the guarantor’s personal assets to recover investor funds.
Demographics Analysis
Demographics in Zip Code Area
| Crown Heights / Prospect Heights | |
|---|---|
| Population | 206,519 |
| Median Age | 35 |
| Born in | New York (49.6%) / Out of the U.S. (22.5%) |
| Race | Asian (4.0%) / Caucasian (30.7%) / Latino (13.5%) / African American (44.5%) |
| Median Family Income | $81,600 |
| Child-bearing (Under 18) | 20.5% |
| Unemployment Rate | 7.6% |
- Prospect Heights in Brooklyn is named after the landmark Prospect Park. Established in 1867 and covering an area of 236 hectares, the park was designed by the same architects as Central Park in New York City.
- The area has convenient public transportation systems and facilities due to its proximity to Downtown Brooklyn and Lower Manhattan. Over the past five years, there has been a surge in new residential development projects to meet the growing housing demand.
- The residents are primarily middle-aged families with stable incomes, with an average age of about 35 years. Most are hardworking local middle-class individuals, and 20.5% of families have children under 18 years old.
- In recent years, a significant number of white-collar workers from Manhattan have started moving into the area, driving up rental and housing prices steadily.
* Source: NYU Furman Center and U.S. Census Bureau, October 2025.
Market Analysis
Residential Market Trend in Prospect Heights
- According to the third-party appraisal by Marshall & Stevens, since the pandemic in 2020, the population of Prospect Heights has only decreased by 0.4%. This stability contrasts with the population outflow in many other areas of New York City and coupled with the relatively young demographic of residents, contributes to the steady development of the local housing market.
- Despite mortgage rates in the US nearly doubling in 2023 compared to the previous year, the median home prices in Prospect Heights have risen to the third highest in history. The median home price in Brooklyn has remained stable at around $950,000, an 18.1% increase from pre-pandemic levels.
- Compared to other areas of Brooklyn, Prospect Heights boasts a beautiful environment, excellent community safety, and convenient commuting options. Its housing prices are more affordable compared to the higher prices in nearby Downtown Brooklyn and Williamsburg, making it an attractive destination for young middle-class professionals.
* Source: Marshall & Stevens; Sites To Do Business; Elliman Q1 2024 Brooklyn Sales Report.
Comparable Condo Units Sold
* According to data compiled on Zillow and StreetEasy, the average sale price of comparable condo units sold is $1,197.83/ft².
Comparable Condo Units for Sale
* According to data compiled on Zillow and StreetEasy, the average listing price of comparable condo units for sale is $1,233.50/ft².
Valuation Analysis
- According to the appraisal provided by Marshall & Stevens, the current land value is approximately $26,310,000, and the completed property value is around $107,380,000. Based on the cost estimates provided by the financiers and commercial banks, considering increased costs from inflation and tariffs, the completed property value is adjusted to $112,188,889.
- CrowdFunz believes that the property value of $112,188,889 adjusted by cost factors aligns with the actual market value of the project, and the cost details are shown below.
| Cost Items | Amount | Cost % | Capital Source | Amount | Capital % |
| Land Cost | $18,000,000 | 27.10% | Commercial Bank Loan | $75,000,000 | 66.85% |
| Hard Cost | $48,489,073 | 47.50% | CrowdFunz Fund 849 Phase II | $8,000,000 | 7.13% |
| Soft Cost | $15,706,198 | 11.79% | Developer Equity | $29,188,889 | 26.02% |
| Financing Cost | $23,571,140 | 9.93% | |||
| Contingency | $6,422,478 | 3.68% | |||
| Total Cost | $112,188,889 | 100% | Total Investment | $112,188,889 | 100% |
* Source: Third-party appraisal report by Marshall & Stevens.
Location
The property is in the central area of Brooklyn, with convenient transportation. It has a 2-minute walking distance to the subway Q line station, taking 15 minutes to reach Lower Manhattan. Driving to LaGuardia Airport takes 30 minutes, and to John F. Kennedy International Airport takes 40 minutes.
Transportation
- Subway：Q line (2-min walk)
- To Downtown Manhattan: 15-minute subway
- To JFK Airport：30-minute driving
- To LGA Airport：40-minute driving
Schools
Several elementary, middle, and high schools are situated in the area, meeting children's educational needs. Additionally, there are numerous language learning centers and various early education institutions nearby to ensure the comprehensive development of children.
Living Facilities
The community surrounding the project provides convenient living conditions and proximity to Chinese immigrant neighborhoods. The area includes various Chinese and Korean supermarkets and restaurants. Additionally, there are large shopping centers nearby to meet the daily dining and living shopping needs.
Entertainment
The project is near various museums, sports venues, and entertainment facilities. The nearby Brooklyn Museum is a cultural landmark of the area and the second-largest museum in New York, after MoMA. Sunset Park and Dyker Beach Park, the New York Aquarium, and the Barclays Center, home to the Brooklyn Nets, are also located nearby.
Developer：New Empire Corp.
Website：https://www.newempirecorp.com/
Previous Collaborations：CrowdFunz Fund 604 / Fund 805 / Fund 819 / Fund 826 / Fund 828 / Fund 832 / Fund 849 Phase I
- The loan provided by CrowdFunz Fund 849 Phase II is a mid-term construction loan provided to support the borrower’s liquidity needs during project development. Based on sufficient collateral, the borrower’s strong credit profile and experience, the loan is used to help ensure the project working capital throughout the construction process. Repayment is expected to come from sales proceeds of condominium units or from the borrower’s cash flow from other projects.
- Borrower of Fund 849 Phase II has substantial experience and maintains a solid credit history. The capital structure of the project is sound, with a loan-to-cost (LTC) ratio of 73.98%, in line with industry standards. The borrower’s equity contribution is approximately 3.6 times the amount of the loan provided by Fund 849 Phase II, strongly backing the borrowing.
- The subject property is in Prospect Heights, a rapidly developing neighborhood in Brooklyn, New York. As the growth of nearby areas such as Downtown Brooklyn and Park Slope continues, a new wave of residential development is emerging in this corridor, with promising long-term market potential.
- Given the above considerations, Fund 849 Phase II is viewed as a low-risk, fixed-income investment opportunity for retail investors.
* Rendering Photo of the Project.
CrowdFunz 849 phase 2 Project Rating
Subscription Agreement (Only available to accredited investors)
Appraisal (Only available to accredited investors)