Affordable Waterfront Mixed Use Luxury Residential Community Development on Gold Coast, NJ

07-Mar-2020

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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

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Projected Capital structure: $272MM ($97MM equity, $175MM debt 65% LTC at 7%)

497,000 gsf (282 residential units 330k nsf / 5k nsf retail / 346 parking spots)

This is a high quality private equity commercial real estate investment opportunity to co-invest with a $8B global real estate developer with a successful long-term track record (completed fifty real estate projects around the world (80MM sf)), and local expertise in building large mixed use affordable luxury community-based development projects. 

This is a value-added affordable luxury residential investment opportunity to acquire 3.65 acres to build two eight story buildings (330k nsf) mixed use residential tower with retail (5k sf) and (346) parking space in a prime waterfront location along the gold coast of NJ.  The site is strategically located next to multiple transportation options (ferry, bus, train, and car) that is only 10-20 minutes commute from midtown west Manhattan (Hudson Yards).  This property will have incredible panorama views of midtown Manhattan skyline and unobstructed waterfront views. 

Value-Added:

This development project differentiates itself from existing competitive condo product mainly due to its unit mix which mainly composed (85%) of affordably priced (under $1MM per unit) product for 1st time home buyers.  The remaining 40% are under $1.5MM per unit.  These condos are affordable luxury units that are great value for your money. 

Lower Property Taxes:  Since July 2018 a property tax reduction is now in effect and provides an additional incentive for new home buyers.

Amenities Package:   Community-based business model of shared lobby, pool, spa, work space, and basketball court, etc.

Gold Coast NJ Frontier

The main target demographic are young professionals who commute to Manhattan for work, small families looking for affordable luxury homes and quality of life.  The property is located in a high population density area where there’s very strong demographic population growth and income growth.  This NJ waterfront district has very low housing inventory and strong demand due to its close proximity to midtown Manhattan business district.  

The gold coast offers a compelling alternative for young professionals due to easy access to Manhattan (10 minutes by ferry) while offering the value proposition of luxury suburban living.  Long-term economic forces and housing demand continue to strengthen as demand for affordable housing is expected to rise dramatically in the next five to 10 years in the NYC Metro area. 

Valuations:

Acquire Land: $75MM ($227nsf) / Hard / Soft Costs: ($443nsf / $81nsf) / Projected Sell-Out PSF at $1,150.

Levered IRR: 30% / Investor ERM: 2x

Time line:  ASAP, ** time frame – construction can be completed in 23 months

This asset is a high quality investment opportunity on a prime waterfront parcel near major transit hubs.

Oxstones Real Estate, www.Oxstones.com  CRE@Oxstones.com

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