Treme-Parker and its Valued Partners have successfully negotiated terms to provide $6.7 million in preferred equity to fund the development of a 50-unit mixed-use affordable rental project in Brooklyn, NY. We are now seeking a $4.79 mm senior preferred position, that offers an attractive 16.75% Internal Rate of Return (IRR), with a 10.5% current pay distributed quarterly. This investment will be realized at 57.6% Loan-to-Value (LTV) with a 10.3% debt yield.

 

Investment Theory

 

Given the critical need for affordable housing in New York City, this investment is poised to capitalize on the significant market demand. The severe affordability crisis, compounded by rising costs and an overwhelming percentage of households struggling to meet the basic cost of living, underscores the necessity and potential profitability of developing affordable and mixed-use housing projects. The city’s pressing need for affordable housing, coupled with strategic government incentives and robust market fundamentals, positions this development as not just a mission-based investment opportunity of much needed goodwill, but as an above market preferred return opportunity.

 

Risk Mitigation

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• Proven Developer Track Record: The deal marks the sixth project collaboration with this legacy Brooklyn developer, with all previous projects either successfully executed or on track for timely exit.

• Experienced and Committed Developer: The developer brings 30 years of experience and a substantial net worth exceeding $100 million, personally guaranteeing the full investment amount.

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Deal Points

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• High Demand Location: Situated in Brooklyn, NY, a prime location with escalating demand for affordable housing.

• Strong Financial Metrics: Offering a 16.75% IRR and 10.3% debt yield, demonstrating robust financial returns.

• Experienced Developer: Legacy Developer with a proven track record and personal financial guarantees.

• Sound Capital Structure: A well-balanced capitalization and risk mitigation plan in place with high return potential.

• Market Necessity: Addressing the urgent affordable housing crisis in NYC, ensuring sustained demand and governmental support.

 

This investment opportunity is available exclusively to verified accredited investors (506c). To access the investor deck and deal room, please submit an inquiry below.

                         

 

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