1. Project led by New Empire Corp, an experienced Sponsor and one of the most active builders in NYC market with in house integrated teams. Since 1997, New Empire Corp has developed 100+ projects, 1,000+ residential units, and has completed $1.6B worth of transactions.

2. Substantial, nearly 10% sponsor co-investment, signifying clear alignment with investors. Not only is this a significant co-investment, but it will sit in the common equity position, meaning that investors will have a priority claim to distributions ahead of the sponsor (downside protection).

3. Investors will enter the project at optimal time as the closing of the site is already done and design is underway; Sponsor has in house construction team to ensure project finish on budget and on time.

4. Innovative modular technology provides quality control and a quick development schedule.

5. Project will be bringing top of the market condo product to Gravesend neighborhood – a strategic located residential area with existing demand and strong population growth. Gravesend is a diverse and safe middle class community with thriving commercial avenues and is only a short walk to the waterfront.

6. The project will have a maximum height of 5 stories (ground floor plus 4 more stories), which reduces construction risks. Due to the low-density nature of the neighborhood’s zoning, residents of the finished condo will have open views (southeast facing Midwood and Sheepshead Bay, southwest facing Gravesend Bay and Coney Island).

• Project budget 7.73mm / equity 3.43mm / debt 4.30mm (about 55% LTC).

• Investor returns & distribution strategy: 8% preferred return calculated on a 365 days basis & 1st distribution at project completion, subject to change based on development timeline.

• Hypothetical 100k investment

  Hypothetical 100k investment
  Investment Start Date:	2/1/2023
  First Distribution Date:	5/1/2023
  Total Investment Days:	455
  Investment Amount:	$100,000
  Preferred Return:	8%

• Total development schedule: 1.65 YR from land closing

• Land closing: 9/7/2022

• Design: 11/1/2022 - 9/1/2023

• Construction: 9/1/2023 - 5/1/2024

• Project finish: 5/1/2024

• Sponsor/developer: New Empire Corp

• General contractor: New Empire Builders

• Architect of Record: Garrison Architects

• Structural Engineer: Entuitive (TBD)

• MEP Engineer: All City Engineering

• Bios & history about the firm (see attachment)

• Executives (see attachment)

• Sponsor DD report (maybe David can create this?)

• In the news, RESOURCES | New Empire Corp

• Attachments on case study and track record (see attachment, more detailed track record can be created)

• Can also add a graphic chart in this section like below (?)

• Capital stack
  project budget 7.73mm / equity 3.43mm / debt 4.30mm (about 55% LTC)

• Sources and Uses

  USES
  Land Acquistion Cost:	$2,250,000
  Air Right Acquistion Cost:	-
  Hard Cost:	$2,958,900
  Soft Cost:	$1,287,756
  Financing Cost:	$651,213
  Property Taxes:	$80,200
  Contingency:	$497,333
  Total:	$7,725.401

  
  

  SOURCES
  Debt:	$4,300,000
  Equity:	$3,425,401
  Total:	$7,725.401

• Financials (budget file)

• Capital Calls
  one time est 2/1/2023

• Fees
  one time 4% dev management fee based on total hard and soft cost
  1% annual asset management fee based on wealthfund equity raised
  one time 2% completion guarantee fee based on total loan amount
  one time entitlement bonus based on final approved building gross sqft
  4% annual property management fee based on effective gross income during operation

• Investor returns & distribution strategy
  8% preferred return calculated on a 365 days basis & 1st distribution at project completion, subject to change based on development timeline.

• Distribution strategy & promotes & project and investor returns (distribution at exit, 7-8% pref return, confirmed?)

• Hypothetical 100k investment

  Hypothetical 100k investment
  Investment Start Date:	2/1/2023
  First Distribution Date:	5/1/2023
  Total Investment Days:	455
  Investment Amount:	$100,000
  Preferred Return:	8%

• Google map

• Street view

• Transportation

  The parcel is close to all transit options: 8-minute walk to D subway line, 15-minute walk to N subway lines, 2-minute drive to Shore Parkway/Belt Parkway that connects to I278 and Verrazzano Bridge.

• Property description and status

  The parcel is a corner lot with over 200 feet frontage along Cropsey Avenue and 28th Avenue, which makes it ideal for modular construction with ample staging area and separation from nearby buildings. It is currently used as a parking lot, so there is only minimum demolition needed. Closing on the parcel is done in September 2022 and design is currently underway.

• Floor plan / diagram / module section

• Unit mix / amenity

  TYPE	SQFT
  Community facility:	402
  Studio:	370
  1 bedroom:	504
  2 bedroom:	838

• Interior rendering

• Details of the submarket & demographics

  • a) Submarket

    Gravesend is a diverse, family-oriented Brooklyn neighborhood along the waterfront of Gravesend Bay. There are lots to do in this area in terms of shopping and entertainment, and lots of room to breathe. Its proximity to Coney Island makes it a great destination for beach and outdoor lovers.

    The housing market in Gravesend is an affordable alternative to the more happening neighborhoods closer to Manhattan, and even to some of its southern Brooklyn peers. Until recently, there weren’t many new development projects in the neighborhood. The relatively affordable housing prices and the lack of new supplies make the area prime for future appreciations.

  • b) Nearby real estate activities

    The area and neighboring Bensonhurst and Bath Beach have welcomed a couple successful new developments in recent years. Just a few blocks away is 2300 Cropsey Avenue, a new rental development targeting a 2023 finish, and will bring over 150 luxury units and a brand new supermarket to the area.

    In November 2022, A&E Real Estate has acquired 14 multifamily buildings in Brooklyn’s Gravesend and Sheepshead Bay neighborhoods from another New York’s major Landlord LeFrak Organization – this $248.7 million portfolio sale signifies strong investor interest in the south Brooklyn neighborhood.

  • c) Demographics

    The average income of households in Gravesend is $77,823. The proportion of residents with higher education post high school is 51%. As the above graph from NYU Furman Center shows, almost 50% of households make $60,000+ per year. The median age of residents is 38.

  • d) Population growth outpaced housing supply

    Data from the 2020 Census, Gravesend experienced a 7.8% population growth in the past decade, adding 7,967 new residents while housing stock in the area decreased by roughly 1,000 units (a 2.5% decrease).

• Nearby amenities & schools

• Sales/lease comps

• Offering Memorandum (loan package)

• Financials (TBD by DM)

• Case Studies & Track Record (NEC and Case Study attachments)

General questions (need to be created)

Contact form (but to Benson or to crowdfund?)

Use the one in loan package?