434 Union Street

Executive Summary

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 434 Union Manager, LLC, a subsidiary of National Realty Investment Advisors, LLC (“Sponsor” or “NRIA”), to inquire about obtaining a copy of the Memorandum.

National Realty Investment Advisors (“NRIA” / “Sponsor”) invites accredited investors to participate in the short-term acquisition, complete renovation, and conversion of a four-unit multifamily property (the “Property”) into a boutique three-unit high-end condominium development, located in the Carroll Gardens neighborhood of Brooklyn, NY. The Property is currently under contract, and will be NRIA’s eighth Brooklyn development of similar size & scope since mid-Q2 2016.
The Property is more specifically located between Bond & Hoyt, just ≈2.5-miles south of Manhattan, ≈1.5-miles from the Brooklyn Bridge, and also within a short-walking distance to numerous subway lines making for an easy commute anywhere in NYC.
Upon acquisition, NRIA has devised a 17-month development plan (that may be extended to a maximum of 20-months, but also may be accelerated) that includes a complete renovation to efficiently maximize & modernize the usable square footage at the Property. The renovation period will be followed by an estimated 3-month marketing process (completed by marketing partner: Compass), whereby the finished condominium units (proposed plans: 434 Union Street) have been conservatively estimated to command ≈$1,460psf on average, based on a current sales comparison analysis (comps currently average ≈$1,508psf).
Accredited investors have the opportunity to invest and receive a 12.0% annualized net return, paid monthly, in a Preferred Equity position guaranteed by the Sponsor. The investment is senior to the Sponsor’s equity but junior to first lien construction debt, which is also guaranteed by the Sponsor and/or Borrowing entity. Investors will receive 100% of principal and their targeted 12.0% net return before the Sponsor participates in sale proceeds.

The Property is located in a Prime, Urban, Growing area of Brooklyn

The Property is located in a Prime, Urban, Growing area of Brooklyn: NYC’s largest and fastest growing borough (population growth: +5.3%, 2010 – 2015), Brooklyn has over 2.6 million residents, and if it was defined as its own City it would be the 4th largest in the US. The Property is more specifically located within the Carroll Gardens neighborhood of Brooklyn, bordering the newly created waterfront esplanade park along the Gowanus Canal where significant new luxury [rental] development is being completed. The neighborhood is just 2.25 - 2.5-miles from Manhattan, and centrally located within walking distance to public transportation (see Property map). Brooklyn has emerged as an incubator for technology, advertising, media, design, and innovation, which is shown through the (i) ≈120% increase in patent filings in Brooklyn over the last 5-years alone, and (ii) the number of adults with advanced degrees moving to Brooklyn tripling from 2009 to 20131. Population & job growth, shortage of new “affordable” supply, continued household formation, lack of developable air rights in the neighborhood, and interest rates remaining low for the foreseeable future, are all important underlying fundamentals that should continue to drive robust growth for many years to come.

SPE created for the sole purpose to invest in one specific multifamily, residential property located at 434 Union Street, Brooklyn, NY 11231

Market

Charming Suburban Utopia

434 Union Street is located along a tree-lined block between Bond & Hoyt Streets, anchored by the elementary school of PS 32 and the Carroll Gardens School of Innovation.

Carroll Gardens…

continues to be thought of as one of Brooklyn's top living experiences attracting families, singles, and couples seeking a long-term home.
The Property is located just a few blocks from the only Whole Foods Market in Brooklyn,…

Whole Food Market

A number of restaurants, boutiques, and many public & private education options. A few listed below:
School District 15
P.S. 32 Samuels Mills Sprole, 0.008-miles
MS 442 School for Innovation, 0.008-miles
P.S. 372 -The Children's School, 0.360-miles New Horizons School, 0.082-miles

Financials

Key Assumptions

Purchased Price

$2.5

Total Equity

$1.5 M

Completed Value

$6.0 M

Returns

GUARANTEED RETURN

12.0%

TARGET HOLD PERIOD

18

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