Residential
Fix-and-Flip
Sea Cliff, N.Y., overlooking Long Island Sound, sits in the midst of Great Gatsby country. The towering Victorian next door might very well be on the National Register of Historic Places. That said, not every home in the village’s square mile is imbued with Jazz Age splendor.
Such was the case of 9 Winding Way. This unoccupied, single-family house needed $308k worth of restoration work. The borrower came to Sharestates seeking a $300k loan with an initial loan amount of $60k plus a $240k escrow holdback. After implementing its proprietary 34-point underwriting review, the project was such an obvious winner that Sharestates initially funded the project on its own account. After closing, the note was offered to our accredited investors on our platform, and it sold out immediately.
In the meantime, construction began, transforming this once-neglected property into a home for a growing young family. The new owners practically have a brand new home with a fully renovated kitchen, bathroom, bedrooms, roof, and more.
Paterson, New Jersey might not be as famous as New York City and San Francisco, but with more than 17,000 people per square mile, it’s almost as densely populated. Roughly 160,000 people call it home, and living there is becoming more desirable.
One of Paterson’s leading real estate developers came to Sharestates with a vision: a 10-story, 200-unit mixed-use complex sandwiched between Hamilton Avenue and Fair Street in the city’s Wrigley Park neighborhood. The project is almost complete.
“Vision” is absolutely the right word for a plan to increase a property’s value by a factor of six. Sharestates arranged a one-year, $4.6 million bridge loan, which helped the developer’s firm get the ground broken while they arranged a longer-term construction loan.
Once the project is completed, it will set a new standard of luxury in Paterson, which has had its struggles through the years. In fact, a sun study was done to see which hours of the day the sun will hit the pool to make sure it was placed in the right location. No detail was overlooked on this project.
Newburgh, N.Y., sits in the picturesque Hudson Valley between New York City and Albany. It also sits between America’s Colonial past and its Information Age future. Developers need to preserve one while preparing for the other.
But this challenge can be overcome, as the owners of 184 Liberty Street prove. A hundred years ago, the 4,200-square-foot structure was built as a single-family home. More recently, a developer realized the vacant house’s potential as a six-family residence and came to Sharestates for a $400,000 bridge loan.
When the rehab is complete, units will be leased out to people who will help write the next chapter of Newburgh’s rich history. Once stable tenants are secured, the owners expect to refinance with a conventional rental loan.
Commercial/mixed-use
There’s nothing more authentically New Yorker than the Bushwick section of Brooklyn: It’s multilingual, multi-ethnic, both working-class and artsy — and real estate values are trending up quickly. Fittingly, the geographic center of the Five Boroughs is pinned to Bushwick’s Stockholm Street.
And a 10-minute drive to the south of that centroid is 1784 Broadway, a century-old mixed-use property under the L train with 16 residential and two commercial units.
The long-time owners of this four-story, 15,000-square-foot property are New York real estate veterans with a track record of paying back tens of millions of dollars in loans, and some of that was through Sharestates. So there was little question that this funding round — secured not only by the property itself but also by the borrower’s personal and corporate guarantees — was worth Sharestates’ risk for a 12-month bridge loan.
The loan has since been refinanced with a conventional rental loan, which has further allowed the borrower to channel funds into new projects in the hidden chambers of the heart of New York.
