Property Details
Stabilized Cashflow  Repositioning Opportunity  Ground-Up Development 
Asset Profile
Opportunistic

North Park Lofts

Astoria, NY

Multi-Family Property
Mortar Capital Management New York, NY
Mortar Capital Management
  • IRR 22.65%
  • Equity Multiple 1.81x
  • Hold Period 30M
  • Minimum Investment $50K
  • Year 1 Cash on Cash 0%
  • Stabilized Cash on Cash 16.8% Y2
  • First Distribution Oct 2022
  • Distribution Frequency Quarterly
  • Co-Investment 5%
  • Preferred Return 12%
  • Investor Profit Share 70%
  • Asset Profile Opportunistic
  • Loan-to-Value 68%
  • Current Occupancy 0%

About this Property

"North Park Lofts is a new development and repositioning of an existing warehouse into 28 residential luxury rental units in the waterfront neighborhood of Hallet's Cove, Queens. The project is located in a well-established neighborhood, popular with families and young professionals, minutes to Manhattan and accessible by all forms of transportation."

-Anthony Morena, Mortar Capital Management

Address 11-32 31st Avenue
Square Footage 32,438 Sq. Ft.
# of Units 28
Price/Sq. Ft. $692
Total Project Cost $22,463,054
Stabilized Loan to Value 58%

Top Questions

All answers are provided by the sponsor, Mortar Capital Management, or its representatives.

 

What are the most important aspects of this investment opportunity for the investors?

Anthony Morena, Mortar Capital Management:

  • "North Park Lofts is a block away from the new ferry service to Midtown Manhattan and Wall Street, and adjacent to the very popular neighborhood of Long Island City."
  • "Mortar Capital does not take any sponsor acquisition fees or asset management fees like a traditional investment or fund."
  • "A low acquisition price per square foot allows Mortar Capital to conservatively underwrite the project, to protect investor capital and maximize investor returns."
  • "The acquisition price of the site was renegotiated and reduced as a result of the Covid shutdown, allowing the sponsor to increase the margin of safety and increasing the investor IRR."
  • "The neighborhood has become one of the fastest growing in New York, and it has seem a recent wave of rental price increases following the Covid re-openings, partially as a result of residents leaving Manhattan for more space and lower prices in the outer boroughs."
  •  

    What is your investment strategy/business plan for the Property?

    Anthony Morena, Mortar Capital Management: North Park Lofts is a ground up development of 28 residential luxury rental units in the waterfront neighborhood of Hallet's Cove. The strategy calls for a 16-month construction period, with an overlapping 6-month leasing period, followed by a sale of the asset following completion of the project. Distributions will be made to investors quarterly as the building is leased, with full return of equity and profit distributions at sale."

     

    How has COVID-19 impacted your business plan?

    Anthony Morena, Mortar Capital Management: "Mortar's rental assets have been performing well in this unprecedented time, with monthly collections above 96% and occupancy stabilizing heading in to the fall. The focus on owning boutique multifamily buildings in growing and established markets has positioned Mortar to better weather the downturn. Part of Mortar’s recent success has been result of a campaign early into the shutdown, communicating with residents, working with residents and their concerns, and establishing an effective system to manage issues as they arose."”

     

    NOTE: All answers provided by the sponsor, Mortar Capital Management, or its representatives.

About this Property

"North Park Lofts is a new development and repositioning of an existing warehouse into 28 residential luxury rental units in the waterfront neighborhood of Hallet's Cove, Queens. The project is located in a well-established neighborhood, popular with families and young professionals, minutes to Manhattan and accessible by all forms of transportation."

-Anthony Morena, Mortar Capital Management

Address 11-32 31st Avenue
Square Footage 32,438 Sq. Ft.
# of Units 28
Price/Sq. Ft. $692
Total Project Cost $22,463,054
Stabilized Loan to Value 58%

Top Questions

All answers are provided by the sponsor, Mortar Capital Management, or its representatives.

 

What are the most important aspects of this investment opportunity for the investors?

Anthony Morena, Mortar Capital Management:

  • "North Park Lofts is a block away from the new ferry service to Midtown Manhattan and Wall Street, and adjacent to the very popular neighborhood of Long Island City."
  • "Mortar Capital does not take any sponsor acquisition fees or asset management fees like a traditional investment or fund."
  • "A low acquisition price per square foot allows Mortar Capital to conservatively underwrite the project, to protect investor capital and maximize investor returns."
  • "The acquisition price of the site was renegotiated and reduced as a result of the Covid shutdown, allowing the sponsor to increase the margin of safety and increasing the investor IRR."
  • "The neighborhood has become one of the fastest growing in New York, and it has seem a recent wave of rental price increases following the Covid re-openings, partially as a result of residents leaving Manhattan for more space and lower prices in the outer boroughs."
  •  

    What is your investment strategy/business plan for the Property?

    Anthony Morena, Mortar Capital Management: North Park Lofts is a ground up development of 28 residential luxury rental units in the waterfront neighborhood of Hallet's Cove. The strategy calls for a 16-month construction period, with an overlapping 6-month leasing period, followed by a sale of the asset following completion of the project. Distributions will be made to investors quarterly as the building is leased, with full return of equity and profit distributions at sale."

     

    How has COVID-19 impacted your business plan?

    Anthony Morena, Mortar Capital Management: "Mortar's rental assets have been performing well in this unprecedented time, with monthly collections above 96% and occupancy stabilizing heading in to the fall. The focus on owning boutique multifamily buildings in growing and established markets has positioned Mortar to better weather the downturn. Part of Mortar’s recent success has been result of a campaign early into the shutdown, communicating with residents, working with residents and their concerns, and establishing an effective system to manage issues as they arose."”

     

    NOTE: All answers provided by the sponsor, Mortar Capital Management, or its representatives.

Offered By

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Assets Under
Management

Currently
$121MM 10+ assets
Exited
$120MM 10+ assets
Portfolio LTV
67%  
Historical
Realized Returns

Total IRR
34.4%  
Equity Multiple
2.6x  
Annual Cash
12.5%  
Years Of
Experience

As Principals
15+ years  
In Business
21 years  
Size
12 Staff * Dedicated investor relations
* All information is reported by Mortar Capital Management as of 9/8/2020.
Assets Under
Management

Currently
$121MM 10+ assets
Exited
$120MM 10+ assets
Portfolio LTV
67%  
Historical
Returns

Total IRR
34.4%  
Equity Multiple
2.6x  
Annual Cash
12.5%  
Years Of
Experience

As Principals
15+ years  
In Business
21 years  
Size
12 Staff * Dedicated investor relations
* All information is reported by Mortar Capital Management as of 9/8/2020.

Financials

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Offering Financial

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Location Details

Astoria, NY

Anthony Morena, Mortar Capital Management:
  • North Park Lofts is a block away from the new ferry service to Midtown Manhattan and Wall Street, and adjacent to the very popular neighborhood of Long Island City.
  • The area is one of the highest growth locations in New York, and is prime for a luxury - high finish rental product at reasonable prices.
  • The design and pricing model will allow MCM to deliver larger and more efficient apartments to residents at a lower market price.

Documents

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Offering Agreement Documents

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