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116-130 Reed Street Units 1-26
About the Property
We are proud to announce one of the last quality and fair priced development sites in the City!
Our property, located at 116-130 Reed Street, is located in the quaint section of Center City Philadelphia called Penns Port. This location has a Walk Score of 93 out of 100 making it a Walker’s Paradise so daily errands do not require a car. This area has a unique appeal, and delivers on the very reasons why people want to live in the city ie; access to employment, amenities, night life, easy public transportation, close to the various colleges and Jobs, Jobs, Jobs.
116-130 Reed Street is comprised of 26 units within a private, luxury complex. Each unit will have $138,000 of starting equity profit with a net cost of $82,000 in.
Rental Economic Benefits are; $15,311 /$82,000 (Cash Flow + Principal Pay Down / Cash In) = 19% ROI.
Unit Overview:
• Exclusive Luxury complex , Penns Port, Philadelphia 19123
• 4,020-4,600 total Sq. Ft.
• 3 bed rooms
• 4 bathrooms / 3 full 1 half
• 10ft plus ceilings
• Bosch Appliances & Grohe Fixtures
• Private 2 car Garage Parking
• Finished Basement
• Media room
• 2nd floor balcony
• 4th FLoor Indoor Wet Bar with Temperature controlled wine frig
• Large Roof Deck with an Outdoor Entertainment Center
• Panoramic City Skyline Views
Further investment benefits at Reed Street include a positive economic cash flow, 5 years of guaranteed rents to cover all expenses at breakeven (rents are $3,200 a month), and 10 years of no property tax – all of which make an investment at Reed Street an absentee owner’s dream return!
Equity Return
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This Property's After Built Sales Value
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$735,000.00 | ||||||||
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Total Cost
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$596,346.00 | ||||||||
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Your Built-In Equity Profit
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$138,654.00 | ||||||||
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DOWNLOADABLE DOCUMENTS:
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Site Plan
Download Site Plan
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Project Management Agreement
Download Project Management Agreement
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SOW Appraisal
Download SOW Appraisal
Net Cash-In Required to Purchase
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Rent Benefits in Addition to Equity Return Above
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Monthly Rental Cash-In Income
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$3,200.00 | ||||||||||||||
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Monthly Positive Cash Flow
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$348.00 | ||||||||||||||
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Monthly Principal Pay Down of Your Mortgage
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$927.92 | ||||||||||||||
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Total Monthly Rent Benefit
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$1,275.92 | ||||||||||||||
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Total Annual Rent Benefit
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$15,311.00 | ||||||||||||||
Annual Rent to Cash-In Returns
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If 100% Purchase with Stock Portfolio Loan at 2%
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$N/A Total Annual Rent Benefit
$N/A Net Cash-In
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=N/A% |
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If 25% Parked Cash
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$15,311.00 Total Annual Rent Benefit
$81,859.00 Net Cash-In
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=18.7% |
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If 100% Cash
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$15,311.00 Total Annual Rent Benefit
$44,846.00 Net Cash-In
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=34.1% |
5 Year Rent + Gross Equity Cash-Out Return
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If 100% Purchase with Stock Portfolio Loan at 2%
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(5 Years x $N/A Total Annual Rent Benefit) + $138,654.00 Equity Return
$N/A Net Cash-In
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=N/A%
5 Years
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= N/A% Per Annum
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||
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If 25% Parked Cash
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(5 Years x $15,311.00 Total Annual Rent Benefit) + $138,654.00 Equity Return
$81,859.00 Net Cash-In
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=262.9%
5 Years
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= 52.6% Per Annum
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If 100% Cash
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(5 Years x $ Total Annual Rent Benefit) + $138,654.00 Equity Return
$44,846.00 Net Cash-In
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=507.8%
5 Years
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= 101.6% Per Annum
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Note: 3 year projections of values, rents, & sales are included in our Business Plans. We have historically been extremely successful at predicting returns and results. However, past success is not a guarantee of future results. We stand behind our services. If for any reason you are unhappy with your investment home – we will buy it back from you. (See our unconditional 100% Money Back Guarantee of Satisfaction Agreement for details.)
Strategic Overview: 143 Summit Street Brooklyn, NY
NRIA, along with its seasoned development partners, is creating affordable Brooklyn condo units at a very attractive cost basis for owner occupant buyers in the $1.6M-to-$3M per unit price range. Of course, it’s a bit “tongue-in-cheek” that an affordable Brooklyn condo unit sells for $1.6M-to-$3M to a primary occupant, but similar sized luxury units in Manhattan will run $4.5M+. The lack of affordability in Manhattan is pushing home-buyers to the exact high end Brooklyn neighborhoods NRIA is focused on such as: Park Slope, Cobble Hill, Boerum Hill, Clinton Hill, Lefferts Gardens, Carroll Gardens, and Northern Crown Heights. Additionally, the fact that the L Train will be closed in 2 to 3 years in the Williamsburg area of Brooklyn is pushing even more new buyers than ever to the Barclays Center area transportation hubs and these surrounding neighborhoods!
The massive purchaser demand for affordable condo units in these prime locations, combined with NRIA’s proven building cost advantages, allow us to pass on this projects calculated built in profit cash flows in advance to our investment partners, structured as immediate monthly high-yield 12.0% (annualized) coupon payments. Having successfully completed over 900 Units in 10 years in Philadelphia and with 17 New York City units already underway, our proven model of locating and negotiating only PRIME REALTY locations has delivered again. Supported by high valuation appraisals, extensive neighboring SOLD condo comps and a secured investment structure for our Preferred Partners, these Brooklyn high yield investments offer a safe realty diversification from the stock market that every investor needs.
Subject Investment:
This limited offering includes only 30 LLC investment interests, or “units,” which are directly secured on the Property’s title. Accredited investors will be able to own 1 or more of the 30 available units in the LLC. Each unit is $89,921 with monthly payouts of $899 every 15th of the month to accepted accredited investors. Funds from the 30 Investor LLC shares will be supplemented by NRIA’s capital investment and our senior lender’s financing, to acquire, renovate, and convert this three-family townhome into three high-end condo units.
Subject Property:
The Property under contract is located at 143 Summit Street between Hicks & Henry, and benefits from being just 2.5-miles south of Manhattan, 1.5-miles from the Brooklyn Bridge, and within a short-walking distance to numerous subway lines making for an easy commute anywhere in NYC. Appraisals on the property securing your investment value the completed building at $6.8M(+), and are available upon request.
This target neighborhood has a virtually zero supply of competing small building family condos on the horizon. In addition, usable air rights nearby are non-existent, preventing any potential for high-rise development.
143 Summit’s high-yielding, short-duration, 12.0% current-pay investment profile is further enhanced by exclusive NRIA guarantees including: (i) Our fixed-price construction contracts, which eliminate any future capital calls, and (ii) NRIA’s “Buy-Back” Agreement, which provide investors a “put-option” at the end of the project (month 20 - maximum allowable project term), whereby any unsold or delayed condo unit(s) is purchased by NRIA for its regular rental investment clients. NRIA and its Management Company have already arranged for $3M of senior debt financing for the project with a major lending institution to complete the purchase, construction tasks, and project funding needs. We alone sign for the payment responsibility of this loan secured on the property. Project validation like this by major financiers is just another safety factor in how these are done.
The combination of (i) our unfair advantage in low building costs, (ii) a prime irreplaceable location, (iii) a lack of competitive small building condo supply (iv) massive housing demand (v) low cost high end luxe condo pricing (iv) National Realty’s 10 year track record of 100% successful property investment experience (vi) and proven property value make 143 Summit Street a winning asset - for the savvy investors’ portfolio.
Further highlights of the 143 Summit Investment Opportunity are listed below. Please inquire for access to the Private Placement Memorandum, for all the details before you invest. The Investment Overview, Architectural plans, Latest US & Brooklyn Housing Market Research and NRIA’s latest 6 years results & track record can be found by clicking here:*143 Summit Street Dropbox
12.0% $899/month 17-month
High Yield: 12.0% Annualized Return over the duration of the project. *Guaranteed*
Current Pay: This high-yielding secured return is paid to investors through a monthly coupon from the date of closing (Est. October 2016).
Short Duration: This investment is expected to-be completed over a 17-to-18 month timeframe, mitigating any unlikely risk of the real estate cycle turning negative.
Risk Mitigation & Capital Preservation
Put-Option: The investment is backed by a “put-option” at the end of the 17-month expected investment term, whereby NRIA will buy any unsold condo units at a price which guarantees 100% return of investor principal.
Fixed Construction Cost Contracts, which eliminate additional investor capital calls.
Cost Efficiency: NRIA builds at the highest quality standard, with 143 Summit estimated at $360PSF vs. “retail” contractors quoting ~$550PSF. These cost savings also provide an equity profit cushion in the project.
Core + Location & Affordability
Brooklyn continues to experience massive gentrification, with the Property’s neighborhood, Carroll Gardens, benefiting from its central location, proximity to mass transit, charming housing stock, and numerous public & private education options, making it an exceptional living environment just outside of Manhattan.
NRIA is providing “affordable” housing units in a market that is surrounded with high-priced high-rise condos selling at $2,000PSF (+). Our sell-out price of only $1,400PSF - $1,450PSF and the sheer lack of small building condo inventory competition in our neighborhoods provides us strong advantages.
Completely renovated single-family townhomes (One Family) range from $5.0M to $7.0M in the Property’s neighborhood.
NRIA’s approach of slicing and completely retroffiting buildings into three (3) affordable $1.6M-to-$3M luxury condo units clearly mitigates the risk of units sitting on the market due to a “high price tag.”
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Sources and Uses of Capital Raised
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Construction Loan – already approved to us as signors
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$2,998,260 |
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Preferred ("Members") Equity
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$2,697,638 |
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Sponsor’s Equity Cash In
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$299,738 |
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Total Sources of Funds
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$5,995,636 |
Uses: Building Purchase, Renovation & Condo Build Out
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Purchase Price
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$2,825,000 |
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Hard Costs ($360psf)¹
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$1,900,000 |
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Soft Costs²
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$498,016 |
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Senior Loan Interest Reserve paid to Lender
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$314,021 |
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Preferred Interest Reserve paid to Members Monthly³
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$458,598 |
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Total Uses Sources of Funds
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$5,995,636 |
1. Hard Costs equate to $360psf (calculated off of the total building envelope: 5,276sf). 2. Soft Costs include “value add” items; Environmental, Engineering, Legal Condo Conversion (Structure & Closing), Architectural Plans, Fire Safety, etc., in addition to customary NYC closing costs. 3. Interest paid to investors over the duration of the project is reserved upfront. |
Exit Assumptions
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Target Project Duration
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17 months (20-Month Max Term) |
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Target Sale Price PSF
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$1,400-$1,450psf |
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Gross Outsale Price
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$6,474,675 |
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RE Sales Commission (%)
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4.50% |
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Net Sales Proceeds
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$6,183,315 |
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Construction Loan Payoff
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-$2,998,260 |
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Your Member, Principal Returned
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-$2,697,638 |
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Our Sponsor, Principal Returned*
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*-$299,738 |
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Exit Returns of Capital & Excess Profit*
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*$187,679 |
*Note: We as sponsor do not receive any return of our investment capital or re-sale profit until our investors are paid in full first. Our LLC guarantee and Parent Company guarantees back up every project. These amounts represent nearly $500,000 of extra “safety cushion” in this project. |
Sample Member Net Return
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One Unit Investment Amount, (30 Units Available)
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$89,921 |
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Net Annualized Preferred Return
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12.00% |
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Your Net Monthly Coupon Payment on the 15th Via ACH to Your Account
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$899 |
Call our Project Management group today to reserve one of these limited immediate cash flowing units. You will only be allowed participation once we have verified your Accredited Investor Status and you have READ and REVIEWED the Private Placement Memorandum and had your inquiries answered.
NOTE: Certain statements contained in our emails related to Private Placement exempt securities are forward looking statements, which reflect numerous assumptions and estimates and involve a number of risks and uncertainties. There are possible developments that could cause our actual results to differ materially from those forecasted or implied in the forward looking statements. Moreover, nothing herein shall constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration, qualification or applicable exemption under applicable federal and state securities law. Only information contained in an appropriate Private Placement offering memorandum, which will be furnished by us upon request to accredited investors only, should be considered in connection with any such securities transaction.
