Accepting $10,000 - $200,000 investments
Have an account? Log in
Accepting $10,000 - $200,000 investments
Yieldstreet participated in a first mortgage loan secured by 13 apartments and 31 car parking spaces in a brand new 12-story Class A condominium building in the River North neighborhood of Chicago, Illinois. The River North neighborhood is a well-established and vibrant community within downtown Chicago. To date, 60% (21/34) of the units have already sold and closed for a total of $30.5M. These closings occurred during the height of the Covid-19 pandemic with no discounts provided and no instances of buyers backing out of the sale.
The $16.0M loan provides financing as the sponsor continues to sell the remaining units. $8.25M of the $16.0M (51.6%) was provided by a senior leverage provider. The sponsor is an experienced Chicago-based real estate investment, development and management firm, having developed over 70 properties in the Chicago area, including several luxury condominium buildings. This is the second deal originated by Avant Capital Partners to be offered on the platform; all previous deals have performed and are performing in line with expectations.
Once the deal is fully allocated, investors can expect a target 9.5% annualized interest up until April 30, 2021, to be paid upfront. From May 2021 onwards, investors can expect to receive monthly interest payments. Principal is expected to be repaid as units are sold.
May 1, 2022
Nov 1, 2022
First year expense
Annual flat expense
Answering our questions will help us bring you better offerings and a more relevant experience
Do you like this offering?
Please refer to the Series Note Supplement for more details about this offering.
Where does Yieldstreet lie in terms of priority?
Yieldstreet invested $5.25M in the $7.75M subordinated portion of a $16M mortgage. The senior position was funded by a family office that provided $8.25M of leverage.
Term and Cash Flow
How do I get paid?
Investors can expect to receive approximately 6 months of prepaid interest at a target annualized rate of 9.5% shortly after the offering is fully allocated on Yieldstreet’s platform. From May 2021 until maturity, interest is anticipated to be paid on a monthly basis. Principal is expected to be repaid incrementally upon the sale of units.
The investment has an initial duration of 18 months, with the potential for two 3-month extensions subject to certain criteria.
What is the collateral underlying the transaction?
13 units and 31 parking spaces in a 12-story Class A condominium building in the River North neighborhood of Chicago, Illinois secure the loan. The building has 34 residential units and 63 parking spaces, with 60% of units already sold and closed. Property amenities include a rooftop sun deck with an outdoor kitchen/bar and grill, a fire pit, a garden area, party room, workout and yoga rooms and a pet recreation area. Each residential floor has four units, and each unit is a corner unit with a private terrace.The units securing the mortgage have an average size of 2,452 SF and are listed for an average price of $2.2M.
The collateral was appraised at $27.3M gross sale value, implying net sale value of $25.2M and LTV of 63.6%.
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.