NYC Times Square Hotel Construction Financing

Annual interest3

Final term3

42 months

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Status

Fully repaid

Recently funded

Accepting $20,000 - $250,000 investments

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Accepting $20,000 - $250,000 investments

Overview

Performance Update

View the most recent update for NYC Times Square Hotel Construction Financing.

Important Note

The deal is structured as an Opco / Holdco structure, wherein the source of funds of the Opco loan is originating from a $62.5M Holdco loan and a $187.5M senior loan from a financial institution (the “Leverage Provider”). YieldStreet has a membership interest in the Holdco loan lending entity, which in effect, allows YieldStreet to indirectly participate in the economics of the Opco loan. As a result of the deal structure described above, the Holdco loan – which is the loan that YieldStreet has membership interests in – is in a junior position to the Opco loan. Although the $250M loan has a delayed draw mechanism with $120M drawn at closing and the remaining $130M expected to be drawn in increments starting in January 2021, YieldStreet’s $7M hold is expected to remain constant throughout the life of the loan. The Holdco Loan will have an initial term of 36 months, but with two one-year extension options that can be exercised if certain credit metrics are met. If both extension options were to be exercised, the Holdco Loan would have a maximum maturity date of 1/1/2025.

Highlights

Prime Location

Collateral Coverage

Large Equity Check

Sponsor Experience

Personal Guarantees

Originator Experience

The Property is located in Times Square Manhattan, which had more than 70,000,000 visitors in 2019, is home to numerous Fortune 500 companies, and has close access to various methods of transportation.
The loan represents 43.5% of the “As-Complete” value and 39.2% of the “As-Stabilized” value of the Property. The value of the Properties would have to decrease 56.5% from its “When-Complete” value and 60.8% from its “As-Stabilized” value before the loan amount would exceed the value of the collateral securing it.
Once fully funded, the Sponsor is expected to have put in a total of $81.7M of equity into this construction project, which will further align the interests of the Sponsor and Lenders.
The Sponsor has over 30 years of experience in the hotel industry and has developed more than 75 properties over his career. The Sponsor reported a cumulative net worth of $824.8M.
The loan has personal guarantees from the Sponsor for payment of completion costs and carry costs.
The Originator has closed more than 320 real estate bridge loans since its inception in 2013 worth almost $2BN, with a default rate of less than 1.0%.

Essentials

Please refer the Series Note Supplement in the Resources section for more details about this offering.

What Secures My Investment?

How Do I Get Paid?

Subordinated Position Risk

Upon an event of default, the Leverage Provider is entitled to receive principal and interest payments in full prior to YieldStreet’s receipt of any payments.

Default Risk

The Borrower may default on its financial obligations.

Construction Risk

The Construction process may end up being delayed or requiring more funds than anticipated.

Early Prepayment Risk

The Sponsor may repay the Loan much earlier than anticipated, affecting investors’ yields.

Return & Management fees

Gross yield

11.0%

Yieldstreet fee

1.0%

Target yield

Interest Type

Monthly 30/360

Schedule

Payment schedule

Monthly Payments

Prefunded

Yes

Maturity

January 1, 2023

Structure

Tax document

K-1

Offering structure

SPV

Expenses

First year expense

$150

Annual flat expense

$70

Docs

Content

This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS S3 REL I LLC ("Issuer"). The Offering is made only by means of the Investment Memorandum relating to the Offering (the "Offering Document"). 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 Document, or as incorporated in the Offering Document 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 Document or in any marketing or sales literature issued by the Issuer or Yieldstreet Management, LLC, as adviser thereto, and referred to in the Offering Document, and, if given or made, such information or representations must not be relied upon. All investors must read the Offering Document in its entirety prior to investing in the securities.

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"Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

Investors

Originators

Resources

Company

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