Waterfront Mixed Use Affordable Luxury Life Style Experience Project, Gold Coast, NJ

20-Jul-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: $825MM ($289MM equity, $536MM debt 65% LTC)

*Investment opportunities – 1) $20MM pref equity is available at 18% for 28 month term with puts or

2) $20MM mezz. debt negotiable with potential kicker

2.7MM gsf / 1.4MM nsf (1.05MM gsf /893k nsf 893 residential rental units / 201k gsf assisted living / 150k gsf hotel / 110k gsf retail / 42k gsf office / 3.5k parking spaces)

This is a high-quality off-market 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+ global real estate projects (80MM sf)), and local expertise in building large mixed-use affordable luxury community-based development projects. 

This is an affordable mixed-use life style (affordable luxury residential rentals, assisted living, office, hotel, retail, and parking space) investment opportunity.  The Sponsor has already acquired (15.8 acres) 2.6MM sf (5 parcels) to build a fully integrated life style community; consisting of six eight to seventeen story (2.6MM gsf) mixed use buildings composed of five different property types (1.05MMM gsf  / 893k nsf 893 residential rental units / 201k gsf assisted living / 150k gsf hotel / 110k gsf retail / 42k gsf office) as well as 3.5k parking spaces in a prime waterfront location along the gold coast of NJ. 

The site is strategically encircled by eight different residential development projects and also located next to multiple transportation hubs (ferry, bus, train, and car) that is 10-20 minutes commute to midtown west Manhattan.  This property will have incredible panorama views of midtown Manhattan skyline and unobstructed waterfront views.  The development site is secured and under control.  The previous building was demolished and site is currently under pre-development work. Site plans are almost complete.  Re-zoning and entitlement will be completed in end of 2021.  This is a multi-phase six-year community-based development project.  The site will be sold in phases with an estimated exit date by the end of 2021.

Inspired by the goal of vitalizing the neighborhood, a world-renowned firm will lead the design efforts of introducing an eastern mixed-use functional architectural prototype focusing on user experience and lifestyle retail.  As the first ever “Affordable Luxury” shopping center in the New York Metropolitan Area, the project aims to integrate work, life, entertainment, food & beverage, and shopping effectively together.  The land value is appraised at approximately $186MM or $103 per buildable square foot, upon the land development completion.   The site is currently secured with Sponsor equity of $35MM.

Greater NYC Metro Area – Gold Coast NJ

New Jersey is considered the sixth borough of NYC.  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 (8 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: $85MM ($227nsf) / Hard / Soft Costs: ($474nsf / $108nsf) / Total All-In Costs 825MM $303gsf/$580nsf *Upon re-zoning and entitlement in 2021 the land valuation will increase to $186MM

Levered IRR: 20%+ / Investor ERM: 2.8x / Net Profit: $454MM

Time line:  Pref. Equity Investment ASAP *Site is fully secured with Sponsor equity of $35MM

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

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