Real Estate

Harrison Multi-Family Recapitalization I

Ann'l net yield3

Term3

9 months

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Status

Closed

Recently funded

Accepting $15,000 - $500,000 investments

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Accepting $15,000 - $500,000 investments

Overview

Highlights

Underlying asset

Desirable location

Guaranties

Business plan

Experienced team

The Project which primarily secures the Loan consists of two phases. The first phase consists of a 205-unit multifamily project across two buildings: a 90-unit multifamily building that is 69% occupied and a 115-unit multifamily property that is ~95% built and scheduled to be completed by April 2022. The second phase of the project consists of an adjacent 6-acre, fully entitled development site approved for up to 898 apartments, 205k SF of retail space, a 200-key hotel, and 1,350 additional parking spaces. Given the desirable location of the project, demand for units within the project is expected to be strong when fully complete.
The Project benefits from its strong transit-oriented location directly adjacent to the Harrison PATH station providing direct access to Manhattan in 25 minutes, Newark in under 5 minutes, and Newark Liberty International Airport within 15 minutes, as well as close proximity to the recently opened Red Bull Arena. Recently, Harrison established a $287 million Waterfront Redevelopment Plan, where public funds were expended to the redevelopment of the submarket’s infrastructure and public facilities and over $1 billion dollars of private investment were committed in the short term. Given the affordable nature of Harrison, NJ relative to New York City, demand for units in the area is expected to remain strong going forward.
The sponsor principals have provided full-recourse personal guarantees for obligations under the mortgage loan and mezzanine loan. The principals are personally liable for all obligations under the Loan.
The Sponsor’s business plan is to complete the second multi-family building, and upon stabilization, sell or refinance the two multi-family complexes that form phase 1 of the development. As per the Loan agreements, the Sponsor is obligated to obtain a temporary certificate of occupancy on at least 80% of units in the second multi-family building by April 29, 2022. Failure to do so would be an event of default and the Loan lenders would be able to exercise remedies. Proceeds from a sale or refinance of Phase 1 would then be utilized to partially pay down the Loan, upon which time, the Sponsor would seek to refinance the remaining loan, which would then be secured only by Phase 2.
The originator, Invictus, is a New York based, vertically integrated real estate PE firm founded in March 2020 by Eric Scheffler and Christopher Pardo. As of 12/30/21, Invictus has purchased or developed 10 properties with total asset value of $675M. Prior to Invictus, Eric was a director at the CMBS group of Bear Stearns (2004-2007), General Counsel and Managing Director at Madison Realty Capital (2007-2010), Principal and General Counsel at Glacier Global Partners, a real estate private equity firm (2010-2020). During his tenure at Madison Realty and Glacier, Eric has handled loan workouts (including foreclosures) on over 150 transactions.
This is the third offering on Yieldstreet originated or sponsored by Invictus. Prior offerings, Williamsburg Multi-Family Restructuring Equity and North Shore Boston Multi-Family Equity, continue to perform in line with expectations.

Essentials

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

Capital structure

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Cash flow

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Assets

What is the collateral underlying the transaction?

Returns & Management fees

Ann'l management fee

2.5%

Min. target ann'l net yield

16.8%

Schedule

Payment schedule

Event based

Target term

10 months

Extension options

One, 6 month

Structure

Tax document

1099-INT

Offering structure

BPDN

Expenses

Ann'l flat expense

0.25%

Docs

Content

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.

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Resources

Company

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