Manhattan Bridge Loan Opportunity

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INVESTMENT HIGHLIGHTS

Minimum Investment:$1,000,000
IRR:Rate Negotiable
Financing Amount:$10,800,000
Total Deal Size:$13,500,000
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This is an excellent opportunity for you to evaluate providing our client with $10.8 million of bridge financing structured as a two year term plus a one year extension for the acquisition and development of 118 Tenth Avenue (the “Project”) between 17th and 18th Streets.

The Sponsor has a fully executed LOI and exclusive in order to acquire the asset which is subject to a very favorable 99 year ground lease with no fair market resets. The property is currently leased to Park, a very successful restaurant, for $1.2 million per year. REEC intends to keep the tenant until construction commences in order to minimize the shortfall during the predevelopment period and also has the option to purchase the ground lease at the end of the 99 year ground lease at fair market value.

The Project will total approximately 50,000 sf and will be mixed-use, which will be mainly office space and will include a retail component of approximately 9,000 sf and basement of approximately 7,000 sf. The value of this developed asset will ultimately be in excess of $100 million.

The asset enjoys a premier location on 10th Avenue in West Chelsea and is across the street from HFZ billion dollar development that will contain a 150,000 sf hotel, 550,000 sf of residential space and 50,000 sf of retail. The Project is also located just one block from the Meatpacking District, Hudson River, the Highline, Chelsea Market, Google Headquarter and the IAC corporate headquarters.

The West Chelsea area now includes many notable boutiques, restaurants, lounges, and nightclubs including several luxury boutique hotels such as the High Line Hotel and The Hotel Americano. The area is also home to the Chelsea Market, one of the most successful retail venues in Manhattan. In addition, just two blocks south of the property, located along the Hudson River, is Young Woo’s colossal project: the Super Pier which is being developed and is expected to be completed later this year. The Super Pier encompasses nearly 12 acres of raw space which is undergoing an extensive renovation in preparation to feature the world’s most sought after retailer restaurant, and lifestyle brands, fused with the most promising emerging talents in food, fashion, film, art and other creative fields.

The West Chelsea neighborhood is not only a booming residential neighborhood but is also known as “Silicon Alley” where companies such as Google, Facebook, Twitter, Uber are headquartered. The area is rapidly becoming the social media, technology capital of New York.

In sum, we believe this to be an excellent bridge financing opportunity and is essentially over collateralized with 50k sf of as of right development.

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