Offering overview
In our second deal with Urban Standard Capital (USC), Yieldstreet provided $1.665M in senior note-on-note financing to an affiliate of USC to close on a $1.85M first mortgage loan backed by a four story multi-family brownstone in the Park Slope neighborhood of Brooklyn, NY. Below are additional details:
- The Sponsor acquired the property for $2.35M at closing of the loan. The note-on-note structure results in not only the Sponsor’s cash equity being subordinate to our investment but also the proceeds funded by Urban Standard Capital.
- Yieldstreet funded this investment based on what it viewed as the attractive basis of our last dollar of exposure, the reputation and track record of the originator, Urban Standard Capital, and the location in what we believe is arguably one of the most established neighborhoods in Brooklyn.
- Park Slope is part of the Prospect Park submarket, which is a popular residential area among families and young professionals in part due to accessibility to Manhattan and lively offering of restaurants, entertainment, cultural events, and green spaces.
Offering update
As of mid-September, the Sponsor has received the necessary permits to commence work.
- Site work had been slowed as the Sponsor experienced delays in the approval of one of the required permits, however, demolition is now complete, and framing has begun.
- The Sponsor reports that the project is on track and is expected to be completed in 4-6 weeks.
- Yieldsteet and USC intend to conduct a site visit of the property within the next four weeks and will update investors accordingly.
Originator overview
This is our second deal we have originated with USC, a NYC-based real estate investment company that has cultivated a reputation based on leveraging its knowledge across multiple verticals to make informed lending decisions. Their track record and experience in the New York market reinforce our confidence in this investment.
- USC also has a captive property manager, which provides real-time market intelligence to facilitate due diligence and underwriting.
- Since 2016, USC has originated 47 loans, totaling over $176M, all backed by properties in the Greater NYC Area.
Investor FAQ we’ve received
What does note-on-note mean?
A note-on-note financing refers to the fact that our investment is backed by the underlying mortgage rather than the underlying property. Under certain events including an event of default by USC’s borrowing subsidiary (Yieldstreet’s counterparty), Yieldstreet can take control of the mortgage immediately and take priority over USC’s position when attempting to recover capital.
What's Yieldstreet?
Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]