Accepting $10,000 - $500,000 investments
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Accepting $10,000 - $500,000 investments
Invest indirectly in a $13.1M first mortgage loan secured by an under-construction ultra-luxury home and two completed single-family homes located in Park City, Utah. Park City is a premier second-home ski destination that caters to wealthy West Coast residents. The property is under construction with financing proceeds being used to repay existing debt, fund a construction reserve, fund interest & tax reserves and pay closing fees. This offering refinances Park City Luxury Property, which was first offered to investors on Yieldstreet in July 2020.
As of 1/5/21, construction is approximately 65% complete. The borrower has negotiated a guaranteed maximum price with the general contractor for the full hard costs remaining of $8.1M, of which $1.97M was paid at closing for work already completed. This refinancing provides the borrower with an increase in construction reserves, sufficient to cover the guaranteed maximum price plus $100k in contingencies. The borrower expects construction to be completed by October 2021. Demand for homes in Park City has been strong, with total unit sales for 2020 up 64% year-over-year, while total sales volume was up $889M, an 83% increase. Furthermore, the median price of a single-family home across the city rose 26% over 2019.
The loan has a target term of 12 months. There is a possibility that the property is not sold within the loan term in accordance with the sponsor's business plan, in which case the borrower may require an extension or seek to refinance the loan. If that were to occur, the lender may renegotiate to modify or extend the loan at their discretion. Investors are expected to receive monthly interest payments at a target annualized yield of 8.65%. Principal is expected to be repaid at maturity.
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Do you like this offering?
Please refer to the Series Note Supplement for any additional details.
Where does Yieldstreet lie in terms of priority?
Yieldstreet has purchased a $9.85M participation in a first mortgage loan with equal payment priority under the loan as the originator and its investors.
Based only on the ultra-luxury home, the fully-disbursed loan’s basis is $817/SF and the loan’s basis at closing (net of reserves) is $349/SF. The appraised valuations for the ultra-luxury home equate to an “as-complete” loan-to-value of 35.6% and an “as-is” loan-to-value (net of reserves) of 31.1%.
How do I get paid?
The loan has a target term of 12 months. Investors can expect to receive monthly interest payments at an annualized target yield of 8.65%. Principal is expected to be repaid at maturity upon a sale or refinance of the property.
There is a possibility that the property is not sold within the loan term in accordance with the borrower’s business plan, in which case the borrower may require an extension or seek to refinance the loan. If that were to occur, the lender may renegotiate to modify or extend the loan at their discretion.
What is the collateral underlying the transaction?
The loan is secured by one under-construction ultra-luxury home and two single-family residences located in Park City, Utah. The home under construction is located within a ski-in/ski-out gated community nestled in the heart of Park City Mountain, which offers direct ski access as well as a network of hiking, biking, and horseback riding trails. Upon completion, the home is expected to feature six bedrooms, six bathrooms, an indoor/outdoor pool and hot tub, a gym with steam and plunge pool, a bowling alley, a golf simulator, an indoor sports court, an aerial tower lounge, a spa, a heated driveway entrance and a watch tower. The two single-family homes are adjacent to each other and well located, bounded on the east by a major road, on the south by Deer Valley Resort, and on the west by Park City Mountain.
The borrower is a real estate development company which focuses on new construction single and multi-family residentials. The principals of the borrower have provided a full recourse guarantee for the loan. As of 2/22/21, the principals reported a combined net worth of $7.5M held personally and $10.4M beneficial interest in trusts.
This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS AltNotes I LLC ("Issuer"). The Offering is made only by means of the Private Placement Memorandum dated January 14, 2022 and the Series Note Supplement relating to the Offering (collectively, the "Offering Documents"). The information on this offering page is a summary of the Offering, does not purport to be complete and should not be considered a part of the Offering Documents, or as incorporated in the Offering Documents by reference or as forming the basis of the Offering. No person has been authorized to give any information or to make any representations other than those contained in the Offering Documents or in any marketing or sales literature issued by the Issuer or Yieldstreet Management, LLC, as adviser thereto, and referred to in the Offering Documents, and, if given or made, such information or representations must not be relied upon. All investors must read the Offering Documents in their entirety prior to investing in the securities.
Investing in private markets and alternatives, such as this offering, is speculative and involves a risk of loss, and those investors who cannot afford to lose their entire investment should not invest. Returns are not guaranteed.