This investment summary is provided for informational purposes only and does not constitute an offer or solicitation to acquire interests in the investment or any related or associated company. Any such offer or solicitation may be made only by means of the confidential Private Placement Memorandum (“Memorandum”) and in accordance with the terms of all applicable securities and other laws. All information contained herein is subject to and qualified by the contents of the Memorandum. As more fully described therein, participation in any securities offering is limited to Accredited Investors. Please contact NRIA Brooklyn II, LLC, a subsidiary of National Realty Investment Advisors, LLC (“Sponsor” or “NRIA”), to inquire about obtaining a copy of the Memorandum.

NRIA (“Sponsor”) is pleased to offer qualified investors the opportunity to participate in the acquisition & pre-development of a prime ≈22.39-acre site (≈12.76-acres usable / developable)(the “Property” or “Site”), located on the Delaware Riverfront in Philadelphia, PA, surrounded by significant commercial development, transit options, and just minutes from Center City. The Property is part of a larger ≈30.39-acre combined site now consisting of six (6) separate parcels; two (2) of which NRIA is purchasing, two (2) purchased/leased by large Corporate firms (Lidl and Wawa) for development, leaving two (2) remaining lots for the seller to develop (see details on each parcel).

 

The subject ≈22.39-acre Property consists of two parcels; ≈7.74-acres (≈337,154sf usable) and ≈14.65-acres (≈5.1-acres usable, or 218,500sf usable), zoned as CMX3 (permitting mixed commercial development), with ≈900ft of river frontage and the proposed future development of 214-luxury townhomes (+ supporting commercial uses; please see preliminary site plan). The submission of the proposed luxury townhome development to zoning is done to permanently protect (grandfather) the right to develop the site as such; however, the subject sites total buildable area (as of right) is a combined ≈4.88MSF, creating enormous upside for a possible alternative use (i.e. mid/high-rise residential mixed-use, etc.).

 

Since the subject Property went into contract, there has been a flurry of market defining property trades on the Delaware Riverfront, and as a result has substantiated what we believe was an already well below-market acquisition at $20.4M ($37 per usable foot), with recent property trades averaging $164 per usable foot. Please see key valuation points here.

Upon acquisition (12/15/17), NRIA will continue the design, permitting and approval process for the ultimate end-user and/or developer buyer. The approval process will merge with a dedicated marketing process, whereby the entitled site has been conservatively estimated to command $35.0M within 12-to-14-months of closing. Additionally, given NRIA’s successful track record of luxury townhome development in Philadelphia, we may choose to refinance, pay-off investors, and move ahead with the development (or develop a portion of the Site).

The Property is located in a prime, urban, growing area of Philadelphia. The Site is specifically within the Central Delaware Riverfront Overlay District (areas of Pennsport / Queens Village), one of the most active areas of development in Philadelphia; home to well-established neighborhoods, large institutions and cultural icons. This riverfront corridor spans nearly 5-miles, featuring new residential, hospitality & entertainment development which is attributable to (i) ongoing successful public/private investment in infrastructure and the City’s tax abatement program encouraging (re)development, (ii) continued interest is urban residential live / work communities, and (iii) close proximity and accessibility to the heart of Center City & riverfront amenities. Local demographics, ease of access to both Philadelphia’s CBD and its major transportation arteries, current successful development in the immediate area, and Philadelphia’s broader commitment to the Delaware River waterfront are all critical factors ensuring the financial viability of a residential project on the site.

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