426 Willoughby Avenue

DEAL SNAPSHOT

Located in a dynamic neighborhood of Brooklyn. Developer is converting an existing 1-story warehouse into a modern 4-story multifamily rental property. Projected returns of 10%.

$1,300,000

OFFERING SIZE

10%

PROJECT YIELD

$5,000

MINIMUM INVESTMENT

XX% FUNDED

XX% Funded

Investment Summary


This cash flowing single story warehouse will be converted into a 4-story residential rental property. The ground floor will be leased to a commercial tenant(s), while the newly constructed upper floors will consist of a blend of modern 2-bedroom apartments.

The developer on this project owns several properties in the immediate area and already has a management team in place.

The property is projected to generate a net revenue of approximately $300,000 annually. The cost of construction is projected at $1,700,000, with all new modern amenities to be added to the property.

The developer and a private investor will be putting in 57% of the capital for acquisition and construction. Blockshares members are being offered the opportunity to invest in the remaining 43% of the project.


Financial Overview


$1,300,000

Offering Size

$5,000

Minimum Investment

2-3 Years 

Project Hold Period

10%

Project Annual Yield



Property Data


  • The existing building is a 1-story 3,000 square foot warehouse.
  • Zoned R6A, which allows for 3 additional residential floors to be added to existing structure.
  • Current ground floor tenant is a floor retail outlet that will be re-leasing ground floor space upon project completion.
  • Ten modern apartments will be added to the existing structure.
  • Corner property with great exposure.
INTERIOR AFTER CONSTRUCTION
EXTERIOR AFTER CONSTRUCTION (RENDERING)


Area Analysis


  • Property is located in Brooklyn on the borders of the Bedford-Stuyvesant, Clinton Hill and Williamsburg neighborhoods.
  • Brooklyn as a whole, and these areas specifically, have witnessed remarkable growth and rebirth over the past 5 years.
  • Location is under 2 miles from Manhattan, Barclays Center (Downtown Brooklyn).
  • Walking distance (7 blocks) from Pratt Institute of Technology.
  • Bus lines and subways lines within 3 blocks.
40.693142
-73.952902
This cash flowing single story warehouse will be converted into a 4-story residential rental property. The ground floor will be leased to a commercial tenant(s), while the newly constructed upper floors will consist of a blend of modern 2-bedroom apartments. The developer on this project owns several properties in the immediate area and already has a management team in place. The property is projected to generate a net revenue of approximately $300,000 annually. The cost of construction is projected at $1,700,000, with all new modern amenities to be added to the property. The developer and a private investor will be putting in 57% of the capital for acquisition and construction. Blockshares members are being offered the opportunity to invest in the remaining 43% of the project.
11


Developer


Blockshares Properties is a Brooklyn based real estate development company that acquires, develops and manages commercial real estate. Our core business targets office, school, retail, and residential properties in specified high growth areas with individual acquisition prices below $20 million. The founders of Blockshares Properties have focused on identifying and investing in budding high growth neighborhoods prior to mainstream institutional developers engaging in development of the area. Along these lines, our development company purchased and repositioned multiple properties in both the Crown Heights and Bedford Stuyvesant areas of Brooklyn several years ahead of the influx of institutional interest and the subsequent surge in property values in these neighborhoods.

Ownership Structure (Equity Breakdown)


Blockshares $1,300,000 43.33%
Developers Equity $500,000 16.67%
Private Investors Equity $1,200,000 40%
Total Equity Stake $3,000,000 100%


Project Cost and Payout


Annual Return
$298,575
Net Income
÷
$2,981,379
Project Cost
=
10%
Annual Return


Project Costs


Budget
Real Estate Taxes 45.85% $25,415
Repairs & Maintenance 39.71% $22,010
Utilities 14.43% $8,000

Total 100% $55,425


Project Income and Expense


Hard Costs
Acquisition Costs 46.4% $1,300,000
Environmental 0.54% $15,040
Exterior & Facade Work 3.16% $88,400
Interior Work 14.54% $407,500
Permitting & Expediting 0.6% $16,900
Structural 12.82% $359,180
Utilities & Mechanical 14.97% $419,520
Contingency 6.97% $195,354

Total 100% $2,801,894
Soft Costs
Architect's Fee 28.97% $52,000
Insurance 17.27% $31,000
Leasing Fee/Brokerage 31.78% $57,040
MEP Engineering 11.4% $20,455
Real Estate Taxes 4.9% $8,800
Structural Engineering 5.68% $10,190

Total 100% $179,485
Total Hard Costs $2,801,894 94%
Total Soft Costs $179,485 6%
Total Development Costs $2,981,379 100%
Annual Return
1 Bedroom Apartments (10 units x $2500 monthly) 84.75% $300,000
Ground Floor Commercial (1 Unit x $4500 monthly) 15.25% $54,000

Total 100% $354,000
Expenses
Real Estate Taxes 45.85% $25,415
Repairs & Maintenance 39.71% $22,010
Utilities 14.43% $8,000

Total 100% $55,425
Annual Net Income
Gross Income $354,000
Total Expenses $55,425

Annual Income $298,575


Development Plans


Edith Court Properties, the owner and developer of 426 Willoughby Avenue has finalized plans to convert this one-story commercial building in the Bedford Stuyvesant section of Brooklyn. The property is zoned R6A, which will allow an FAR of 3.0 on the lot. The project entails adding 3 additional floors to the existing structure, creating a mix of ten (10) one and two bedroom apartments. The apartments will be marketed to the young professional community in the area as a rental property with modern amenities. Additionally, the ground floor of the property will be retained to continue to serve as a commercial rental space.


Property Highlights


  • Three stories, totaling 10 residential rental apartment to be added.
  • Elevator servicing all floors.
  • Corner lot, windows on all sides proposed.
  • All apartments to have balconies, ultra modern finishes.
  • Recreational room, outdoor common area and bike storage in building.
  • Bedrooms in all units to have floor to ceiling windows.


Milestones Date
Filing for Construction Permits Fall 2016
Construction Commencement Winter 2016
Construction Completion Fall 2017
Projected 100% Leased Winter 2017

Area Overview


40.6903319
-73.9540686
31 Kosciuszko Street, Brooklyn, NY 11205, USA
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40.692947
-73.9546556
173 Spencer Street, Brooklyn, NY 11205, USA
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40.693142
-73.952902
426 Willoughby Ave, Brooklyn, NY 11205, USA
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12
Bedford-Stuyvesant, , NY

Area Analysis


  • Property is located in Brooklyn on the borders of the Bedford-Stuyvesant, Clinton Hill and Williamsburg neighborhoods.
  • Brooklyn as a whole, and these areas specifically, have witnessed remarkable growth and rebirth over the past 5 years.
  • Location is under 2 miles from Manhattan, Barclays Center (Downtown Brooklyn).
  • Walking distance (7 blocks) from Pratt Institute of Technology.
  • Bus lines and subways lines within 3 blocks.
Located in the center of Brooklyn, Bedford-Stuyvesant has emerged as a hotspot for arts and culture in Brooklyn and is one of the most dynamic and fastest growing neighborhoods in the Borough. The area has seen an influx of restaurants, bars, and is being improved and renovated with strong support of the local community. Good transportation and proximity to Manhattan, Downtown Brooklyn, Bushwick and Williamsburg make Bed-Stuy an area with strong potential for rapid future growth.

Comparable Area Properties


The Lighthouse

31 Kosciuszko Street Brooklyn NY

Property Type : Multifamily
Number of Units : 24
Status : Existing
Year Built : 2008
Stories : 12
Building Size : 35000
Spencer Street Apartments

173 Spencer Street

Property Type : Multifamily
Number of Units : 20
Status : Existing
Year Built : 2010
Stories : 5
Building Size : 35000

Developer Information


Blockshares Properties is a Brooklyn based real estate development company that acquires, develops and manages commercial real estate. Our core business targets office, school, retail, and residential properties in specified high growth areas with individual acquisition prices below $20 million. The founders of Blockshares Properties have focused on identifying and investing in budding high growth neighborhoods prior to mainstream institutional developers engaging in development of the area. Along these lines, our development company purchased and repositioned multiple properties in both the Crown Heights and Bedford Stuyvesant areas of Brooklyn several years ahead of the influx of institutional interest and the subsequent surge in property values in these neighborhoods.


Managing Members








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