Property Details
Repeat Sponsor  Repositioning Opportunity  Ground-Up Development 
Asset Profile
Value Add

The Graham Lofts

Brooklyn, New York

Multi-Family Property
Mortar Capital Management New York, NY
Mortar Capital Management
Targets
  • IRR 22%
  • Equity Multiple 1.65x
  • Hold Period 2.5Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash See PPM
  • Stabilized Cash on Cash See PPM
  • First Distribution Oct 2020
  • Distribution Frequency Quarterly
  • Co-Investment 8%
  • Preferred Return 12%
  • Investor Profit Share 70%
  • Asset Profile Value Add
  • Loan-to-Value 70%
  • Current Occupancy 0%

About this Property

Mortar Capital Management represents a premier real estate development and investment management team with over 50 years of collective experience and expertise in construction, real estate development, investments and management.

Over the last 17 years, Their team has worked on various successfully completed real estate projects in the New York City area. They are proud to have a team with the skill sets of developers, architects, deal originators, construction managers and private investors. Their projects have generated superior returns on both a rental and sales basis.

In 2018, the valuation of Mortar’s current group of projects in development has grown to $125 million dollars, with over $30 Million of investor capital in place, and over 100,000 square feet in multi-family development throughout the New York area.

This new development, The Graham Lofts, will be their first new development of 2019. Located in a robust and thriving neighborhood of Williamsburg, Brooklyn, Graham Lofts will be the home of 16 residential condominium units. Mortar has successfully completed close to a dozen residential developments in this Prime sub-market, establishing Mortar as one of the premier residential developers in the area.

Mortar Capital Management raises capital through the issuance of membership interests in a limited liability company. Over the last 15 years – with over a dozen projects under their belts – they have been able to consistently provide investors with an average annual return of over 18% on their equity investment.

The minimum investment is $50,000, and the average investment is $250,000.

Investors have the ability to invest IRA or Retirement funds.

Disbursements are made at the completion of the project. The estimated project term is 30 months.

Key Points

  • Manager with a Proven Track Record and Co-Invest in every project
  • Transparent Investor Relationships, providing investors access direct to the project team, quarterly progress reports and annual financial reports
  • Conservative Capital Structure and approach to underwriting
  • Specialized Niche Market Strategy
  • Independent Financial Reporting by one of the Top Accounting Firms in the US
  • Sponsor provides a completion guarantee to primary debt lenders
  • Knowledgeable and Disciplined investment and management team
  • Sponsor fee does not get paid until the project is successfully completed
  • Off Market Deal

Offered By

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Assets Under
Management

Currently
$95MM 10+ assets
Exited
$120MM 10+ assets
Portfolio LTV
67%  
Historical
Realized Returns

Total IRR
21%  
Equity Multiple
1.9x  
Annual Cash
12.5%  
Years Of
Experience

As Principals
15+ years  
In Business
17 years  
Size
12 Staff * Dedicated investor relations
* All information is reported by Mortar Capital Management as of 6/7/2018.
Assets Under
Management

Currently
$95MM 10+ assets
Exited
$120MM 10+ assets
Portfolio LTV
67%  
Historical
Returns

Total IRR
21%  
Equity Multiple
1.9x  
Annual Cash
12.5%  
Years Of
Experience

As Principals
15+ years  
In Business
17 years  
Size
12 Staff * Dedicated investor relations
* All information is reported by Mortar Capital Management as of 6/7/2018.

Financials

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Offering Financial

Sponsor Diligence Report

Overview Sponsor

RealCrowd requires that all Sponsors must meet a minimum criteria to be qualified to list on the RealCrowd Marketplace. It is important to note that all diligence and qualifications are based on the Sponsor and the lifetime experience of all its current Principals. RealCrowd believes that evaluating the Principals is the most effective and objective way to consider the quality of a sponsor. The following two benchmarks are the basis of our criteria: principal experience and disclosures.

Mortar Capital Management
New York, NY
http://mortararchdev.com/
Report created on Nov 28, 2018
Over $50 Million Track Record

RealCrowd requires all Sponsors including their Principals to have a combined lifetime minimum of $50MM or $100MM of completed project cost or acquisition cost as a General Partner or Managing Member of an ownership entity with their own Principal equity invested, and at risk, in the project and with day-to-day involvement in the ownership depending on their lifetime Principal experience.

Current $95MM
Exited $120MM
Over 10 Years Principal Experience

RealCrowd requires all Sponsors to have Principals with a combined lifetime minimum experience of 7.5 or 10 years depending on their combined lifetime track record (see above). Qualifying experience include true Principal experience which is defined as a General Partner or Managing Member of an ownership entity with real cash equity invested, and at risk, in the project and with day-to-day involvement in the ownership. There must be at least 1 Principal with at minimum 5 Years of true Principal experience. Additional partially qualifying experience also includes Executive management experience, but only at VP-level or higher with a role specifically related to management of commercial real estate investment projects. Executive experience is discounted at 50% of time value as it relates to the minimum criteria for approval.

15+ Years
Combined
True Principal Experience 15+ Years
Years as Current Company 17 Years
Forclosures Clear
Short Sales Clear
Current or Pending Investigations Clear
Quick Analysis Flags

Quick Analysis Flags provide a high level indication as to whether or not the applicants themselves, or associates, appear on standard searches such as OFAC or Global Sanctions lists, bankruptcy filings, criminal records and other common disqualifying events.

Clear
Criminal Convictions None Reported
Current or Pending Legal Actions None Reported
Judgements, Claims, Arbitration None Reported
Bankruptcies

Bankruptcies are reported for a period of 10 years from the date of application. Bankruptcies from more than 10 years prior to the application date will be footnoted below.

None Reported
Lawsuits None Reported
Outstanding Liens Greater than $10,000 None Reported
UCC Defaults

Uniform Commercial Code Defaults pertain to obligations and loans that are typically secured by non-real property. A UCC Default would indicate the applicant has not met their obligations to a Security Agreement as per the stipulations of the UCC.

None Reported
Criminal Filings None Reported
Current or Pending Legal Actions None Reported
SEC Filings/Other Documents Related to SEC Filings None Reported
Real Estate Track Record Verification

Identifies current and historical investment properties owned by the Principals of the Sponsoring entity. 30% of the properties (up to 10 properties) are verified for acquisition value, acquisition date, sales date (if applicable), sales price (if applicable) and ownership entity.

FINRA Broker Check

All Principals are screened to identify any past disciplinary actions related to employment at brokerage firms.

Adverse Reporting/Articles/Findings

Web search for relevant news articles and reporting on any sponsor or manager activities that may impact or inform their ability to manage real estate.

Clear
Adverse Social Media Profiles

Search of common social media platforms for profiles that contain offensive content or material relevant to ones moral turpitude.

Clear
LinkedIn Search

Search of LinkedIn to confirm professional experience conforms with reported experience.

Clear
Download Sponsor Report

Location Details

Brooklyn, New York

  • Prime and sought after local residential market
  • Popular and thriving location, solid neighborhood with established, sales comps, schools, safe neighborhood, and tremendous residential and commercial growth over the last ten years
  • Waterfront east of Manhattan
  • Direct access to trains, ferries & buses
  • Walking distance to restaurants, galleries, shopping
  • Highway access less than five minutes away

Documents

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  • View, download, and print the detailed financial projections
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Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

The funding deadline for this offering is December 31st, 2018.

The first projected distribution is scheduled for October, 2020.

Distributions are scheduled to go out on a quarterly basis.

Yes, non-US residents are welcome to apply. Please contact the sponsor for more details.

RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

RealCrowd offerings are open to accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.

RealCrowd is a marketplace that connects investors with qualified sponsors. We strive for transparency and impartiality. For this reason, we do not participate in any offerings on our site.

Have a Question?

Send Mortar Capital Management and/or RealCrowd a message. If you have a question about this offering ask Mortar Capital Management. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

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