S3 Capital

ORIGINATOR PROFILE

Founded in 2013, S3 Capital (“S3”) is the real estate lending arm of Spruce Capital Partners and is an active private real estate debt lender in New York City. Led by Joshua Crane and Robert Schwartz, S3 primarily focuses on construction loans and short-term bridge financing and is headquartered in New York, NY.

Deal Sourcing & Underwriting

S3 has a flexible platform that originates smaller loans between $1M and $20M, and larger loans from $20M to over $250M. Since its inception, S3 has originated over 350 first mortgage loans, with a current portfolio of 132 active loans totaling over $1.4B. At a high level, S3’s underwriting criteria consist of the following:

Borrower:

The borrower has existing real estate investments in their portfolio whose value is greater than that of the proposed loan
Completed at least 4 projects
Borrowed from conventional lenders in the past
No outstanding major litigation issues
No past criminal charges

Credit Underwriting:

Loan-to-value for rental buildings – up to 65% at closing & as stabilized
Loan-to-value for condo projects – up to 65% at closing, 60% as stabilized
Loan-to-value for hotels – up to 65% at closing & stabilized, both from an NOI and per-key basis
Loan-to-cost of up to 75%

Out of the 350+ loans originated since inception, S3 has only had two loans in foreclosure – one is still undergoing and is expected to recover the full value of the principal, the other is completed and S3 recovered 1.45x of the original principal.

Management Team

Joshua Crane

Co-Founder and Principal

Joshua Crane is a Co-Founder and Principal of both Spruce Capital & S3 Capital and is responsible for sourcing and executing on all aspects of the business. Previously, he was a partner at Irongate, where he developed the Trump International Hotel & Tower at Waikiki Beach Walk. Joshua also worked at Stellar Management, where he was involved in the acquisition of Independence Plaza, a 1,330-unit rental building in New York City’s Tribeca, and 2,000 units in Washington D.C. The firm also bought and sold more than one million square feet of NYC office buildings. Joshua began his career at Solomon Brothers in the Mergers and Acquisitions group. He graduated from the Wharton School at the University of Pennsylvania.

Robert Schwartz

Co-Founder and Principal

Robert Schwartz is Co-Founder and Principal of Spruce Capital and is responsible for all aspects of the business including acquisitions, financing, and management. He manages S3 Capital and is a member of its investment committee. Prior to founding Spruce Capital, Robert helped run a successful family business where he established the family’s real estate investment program. Robert began his career as an investment banker at DLJ and UBS. He graduated from the Wharton School at the University of Pennsylvania.

Shawn Safdie

Managing Director, Credit Origination

Shawn Safdie is head of debt origination at S3 Capital Partners where he focuses on loan origination, business development, structuring and underwriting. He excels at developing and maintaining relationships and executing transactions. Shawn has more than 15 years of experience in the real estate credit business and has always focused on the bridge lending space. He has a BA in Business Management & Finance from CUNY Brooklyn College.

Matan Kurman

Managing Director

Matan Kurman joined S3 Capital Partners at its inception in July 2014 to manage day-to-day operations and underwriting of loans. Prior to working for S3, he was an acquisition intern at Brookwood Financial Partners. Matan previously served as Captain in the Israeli Air Force as an F-16 fighter pilot. During this time, he gained experience planning and executing complex operational missions. In addition, he managed system installations and supervised scheduling and training scenarios for an F-16 Simulator Unit. He earned his undergraduate degree from Ben-Gurion University of the Negev in Beersheba, Israel with a BA in Political Science and his MBA from Brandeis University in Waltham, MA. He is fluent in English and Hebrew.

Peter Rosenberg

Construction & Development

Peter Rosenberg is responsible for all aspects of construction and development for both Spruce and S3. He previously was a Managing Director of Development and Construction at Lightstone and a Director of Development at Stellar Management. Peter started his career at Turner Construction and Rockrose Development. He holds an MBA in Finance from New York University’s Stern School of Business, as well as a BS in Mechanical Engineering from the University of Vermont. He is also a licensed Construction Superintendent in New York City.

Investors

Originators

Resources

Company

We believe our 10 alternative asset classes, track record across 470+ investments, third party reviews, and history of innovation makes Yieldstreet “The leading platform for private market investing,” as compared to other private market investment platforms.

¹ Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

² Represents an net annualized return, using an internal rate of return (IRR) methodology, with respect to the matured investments shown in your Portfolio experience, utilizing the effective dates and amounts of subscriptions and distributions to and from the investments, net of management fees and all other expenses charged to the investments.[read more]

³ "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. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. 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.

⁴ Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

⁵ Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

⁶ The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including July 18th, 2022, after deduction of management fees and all other expenses charged to investments.

⁷ Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Alternative Income Fund before investing. The prospectus for the Yieldstreet Alternative Income Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetalternativeincomefund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

⁸ This tool is for informational purposes only. You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Yieldstreet. Yieldstreet is not a fiduciary by virtue of any person's use of or access to this tool. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.

⁹ Statistics as of the most recent month end.

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

844-943-5378

[email protected]

No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice, except for specific investment advice that may be provided by YieldStreet Management, LLC pursuant to a written advisory agreement between such entity and the recipient. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefore.

Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.

Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.

Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and are willing and able to accept the high risks associated with private investments.

Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.

YieldStreet Inc. is the direct owner of Yieldstreet Management, LLC, which is an SEC-registered investment adviser that manages the Yieldstreet funds and provides investment advice to the Yieldstreet funds, and in certain cases, to retail investors. RealCadre LLC is also indirectly owned by Yieldstreet Inc. RealCadre LLC is a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Information on all FINRA registered broker-dealers can be found on FINRA’s BrokerCheck. Despite its affiliation with Yieldstreet Management, LLC, RealCadre LLC has no role in the investment advisory services received by YieldStreet clients or the management or distribution of the Yieldstreet funds or other securities offered on our through Yieldstreet and its personnel. RealCadre LLC does not solicit, sell, recommend, or place interests in the Yieldstreet funds.

Yieldstreet is not a bank. Certain services are offered through Synapse Financial Technologies, Inc. and its affiliates (collectively, “Synapse”) as well as certain third-party financial services partners. Synapse is not a bank and is not affiliated with Yieldstreet. Bank accounts are established by Evolve Bank & Trust. Brokerage accounts and cash management programs are provided through Synapse Brokerage LLC (“Synapse Brokerage”), an SEC-registered broker-dealer and member of FINRA and SIPC. Additional information about Synapse Brokerage can be found on FINRA’s BrokerCheck. By participating in a Synapse cash management program, you acknowledge receipt of and accept Synapse’s Terms of Service, Privacy Policy, and the applicable disclosures and agreements available in Synapse’s Disclosure Library.

Investment advisory services are only provided to clients of YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission, pursuant to a written advisory agreement.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure

Website Data Collection Preferences

Data SecurityResponsible Disclosure PolicyAccessibilityTerms of UseForm ADV Disclosure BrochureForm CRS