Real EstateJLJ Capital

Northern Virginia Office Financing

Annual interest3

Final term3

12 months

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Status

Fully repaid

Recently funded

Accepting $10,000 - $20,000 investments

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Accepting $10,000 - $20,000 investments

Overview

Yield

Gross Yield

9.63%

Yieldstreet Fee

1.13%

Target Yield

8.5%

Interest Type

Actual 360

Schedule

Payment schedule

Monthly Interest

Prefunded

Maturity

Date

Initial Target Maturity

Feb 1, 2023

Extended Target Maturity

Feb 1, 2024

Structure

Tax document

1099-INT

Offering structure

Expenses

First Year Expense

$100

Annual flat expense

$30

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Essentials

Please refer to the Series Note Supplement 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?

Highlights

Collateral Coverage
Strong Anchor Tenant
Deal Structure
Experienced Originator
Experienced Borrower
  • The Lender’s initial $8.6M loan has a basis of $27/SF. Newmark Knight Frank’s December 2020 appraisal determined an “as-is” valuation of $25.5M, or $81/SF. Based on the appraised “as-is” valuation, the Lender’s loan funded at closing has an LTV of 33.7%. The property was acquired as part of a distressed portfolio sale, which should allow the borrower to price rents competitively, ultimately driving demand.

  • The anchor tenant is the Government Services Administration (GSA), with a lease ending in 2025 and accounts for occupancy of 31%. The GSA lease generates monthly rental income of $265k, or $3.2M per annum. Importantly, the GSA lease does not contain a termination clause and is not subject to appropriations.

    The principal of the borrower is personally liable for all obligations under the loan in the event that the borrower modifies or terminates the GSA’s lease without the lenders’ consent or if the GSA permanently ceases paying rent due to the borrower’s actions.

  • While the loan is outstanding, excess cash flows from property operations up to a net debt yield of 13% per annum ($1.1M per annum based on the initial $8.6M loan) are required to be trapped in an account controlled by the Lenders, who have a first priority lien on the funds. Funds will be held in this account until new leases are signed for tenant improvement and leasing commissions, and otherwise act as additional collateral for the loan.

    As of 12/31/2020, the property is approximately 39% occupied. Besides the GSA, the other tenants are contracting companies, with leases ending between 2021-2025. The borrower is currently in active negotiations with two potential tenants, a law firm and a subsidiary of the GSA tenant, for combined space of 37k SF. The borrower expects the law firm lease to be executed with a high degree of likelihood. As of 1/31/21, in-place rents were $316k per month or $3.8M per year. The annual underwritten net operating income is $2.1M, which covers debt service payments of $752k and the full $1.1M cash trap.

  • JLJ’s management team has 30 years of lending and operational experience in various real estate. This experience allows JLJ Capital to follow commercial banks’ underwriting standards while moving quickly in origination and execution with robust deal flow through established relationships with real estate developers, owner’s operators, brokers and servicers. JLJ utilizes experts in Architecture, Engineering and Construction to review all loans before approval.

    As of 2/9/21, JLJ has originated 26 loans in the amount of $278m. It has over $60m in its current portfolio.

  • The borrower is a New York-based commercial real estate investment firm focused on opportunistic transactions in all asset classes and geographies in the USA. The borrower focuses on strategic asset repositioning, targeted capital improvement plans, and asset management. Since its inception, the borrower has acquired over $2.0 billion in real estate totaling approximately $600M in equity deployed for 18 million square feet across over 50 markets. As of December 2020, the borrower’s AUM was over $700M. As per the Principal’s personal financial statement as of 12/1/2020, the Principal had net worth of over $100M and liquidity of over $5M.

Resources

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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9 Statistics as of the most recent month end.

300 Park Avenue 15th Floor, New York, NY 10022

844-943-5378

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