Tribeca NYC - 44 Hudson - Preferred Equity

Min. Invest $50,000
Target Hold 12 mo
Annualized Returns 24%
Picture 44 Hudson.PNG

Overview

Chesterfield Faring, Ltd. (“CFL”) is making a $1.5 million preferred equity investment (“PE”) to Prime Manhattan Development LLC (“Sponsor”) in 44 Hudson St, New York, NY 10013 (the “Property”). The Property is a 5-story commercial classic loft building with the elevator opening in the center of each floor. Located in the heart of Tribeca, tenants are naturally attracted to this fully gentrified neighborhood; especially tech companies and other boutique firms. Built in 1890/1903, the Property contains 10,015 gross SF above grade plus a 2,003 SF basement. The PE will be used to build-out a model unit on the third floor, common area upgrades, and pay other expenses. Floors 2-5 have been gutted. The plan is to gut the first floor and basement then rent to a single retail tenant, plus lease the 2nd through 5th floors to office tenants. It’s possible the entire building could be leased to

Investment Type: Term: Raise Amount:
Preferred Equity
12 Months $1,500,000

Investment

The Property is secured by an $11.15 million first mortgage loan (“FML”). The $1.5 million PE added to the FML totals $12.65 million. At a current value of $17.6 million, the overall FML and PE together equal 71.9% loan to value. CFL is offering fifteen (15) $100,000 loan participations to you as investors (“Investors”) at twenty four percent (24.0%) per annum (“Interest”). All the Interest accrues until paid off in full at a rate of two percent (2.0%) per month. The PE term is one (1) year. The PE will have two (2) extension options for a term of six (6) months each. If an extension were to be exercised then the same twenty four percent (24.0%) annual rate would apply.

Market Overview

Market. There are very few boutique office buildings in Tribeca, especially with floor plates less than 3,000 SF, which is highly desirable to small businesses for this location. Tribeca is one of the most sought-after residential neighborhoods in Manhattan, and one of the most affluent in the U.S. The Property is located facing Duane Park, a historic center in the heart of Tribeca with high pedestrian traffic, great visibility, and a highly desirable neighborhood to live and work.
Subway access is centrally located to the Property within two to three blocks away for the 4, 5, 6, NR, and the A, C, & E trains, with main stops in Tribeca at Canal/Church Street, Franklin Street, and at Canal/Broadway. Rents in Tribeca range from $70 PSF to $85 PSF for office space and $120 to $155 PSF for retail space, depending on the buildout, exposure, street traffic, sub market attractions, and exact location.