Designed by Logan Wu
CONTENTS Executive Summary
3
Overview
4
Strategy
5
Property Map
6
Retail Properties
7
102-16 Liberty Avenue
8
1815 86th Street
10
Residential Properties
23
71-48 160th Street
24
84-03 Lander Street
26
Kenilworth Portfolio
28
141-48 84th Drive
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524 Coney Island Avenue
32
Pipeline Properties
34
Boston Road
35
Linden Boulevard
37
Hospitality Properties
12
Utica Avenue
39
1118 36th Street
13
E New York Avenue #1
41
73 Mother Gaston Boulevard
15
E New York Avenue #2
43
2586 Stillwell Avenue
17
Pitkin Avenue
45
687 3rd Avenue
19
764 4th Avenue
21
Professional Biographies
47
Contact Information
51
EXECUTIVE SUMMARY ww Jonathan Yunason has been actively investing in real estate projects and managing properties in the New York Metropolitan area for 10 years. ww His knowledge and abilities are predominantly in the areas of feasibility analysis, strategic planning, development maximization, asset management, and negotiation. ww These skills have enabled him to continually produce high-quality projects and positive returns for investors. ww Since it was founded, the firm has undertaken 5 hotel projects and 7 residential developments. ww Six of these projects were sold with approved plans before ever bringing a shovel to the ground. ww As a side project, Mr. Yunason founded a construction company and, in only a few years, has built it into a multi-million dollar firm. ww His education includes rigorous programs in real estate development, real estate finance, and hotel operations at New York University.
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OVERVIEW ww REDA Group was founded in June 2004. ww Based in NYC, REDA Group is a real estate firm whose core business is developing retail and hospitality assets. ww The firm’s expertise lies in site remediation and acquiring undervalued assets. ww The firm has an extended network of companies providing leasing, construction, financial, legal, and property management functions at all times. ww The firm is backed by high net worth individuals from around the globe. ww Currently, REDA Group is building an in-house real estate brokerage leasing team to compliment their retail expansion. ww REDA Group operates at a high standard of professionalism and honesty at all times.
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STRATEGY ww Perform extensive due diligence and market feasibility analyses on all potential acquisition and development projects. ww Capitalize on underutilized, undervalued properties. ww Devise comprehensive capitalization and exit strategies to maximize value for our partners. ww Minimize risk by employing forward-sale, forward-debt-commitment, and pre-lease strategies. ww Utilize our extensive network to gain access to private, off-market transactions. ww Maintain a high level of integrity and credibility through honest dealings and follow-through.
5
PROPERTY MAP
6
RETAIL PROPERTIES
7
102-16 Liberty Ave Ozone Park, Queens Property Summary Lot Size
9,721 SF
Building Size
7,300 SF
Annual Lease Price
$60,000
Per SF
$8.22
ww The vacant property was leased in May, 2013 ww REDA Group is developing a shopping center that will contain 7 retail stores ww The property is in a prime retail corridor with lots of foot traffic ww Construction is slated to begin in January, 2014 and leasing is currently in progress
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102-16 Liberty Ave LEASE & CONSTRUCTION
REFINANCE & OPERATION
PROJECTED SALE
5/1/13 – 12/31/13
1/1/15 – 12/31/18
1/1/19
Lease Payment:
$60,000
Year 1 Projected Rent/SF:
$30/SF
Terminal NOI:
$235,700
Attorney’s Fees:
$5,000
Year 1 NOI:
$214,268
Exit Cap. Rate:
8%
Hard Costs:
$1,455,000
Cap. Rate:
8%
Implied Value:
$2,946,244
Soft Costs:
$320,100
Implied Value:
$2,678,344
Cost of Sale (2%):
($58,925)
Mortgage Costs:
$110,371
LTV:
70%
Sale Proceeds:
$2,887,319
Property Taxes & Insurance:
$31,261
Refinance Amount:
$1,874,841
Debt Outstanding:
($1,766,050)
Total Costs:
$1,981,732
Loan Costs:
($74,994)
Equity Proceeds:
$1,121,269
$204.30
Construction Loan Assumption:
($1,374,824)
Refi Equity Cash-Out:
$425,023
Operating Cash Flow:
$367,207
Project IRR:
38%
Net Cash Flow:
$1,306,591
Net Present Value @15%:
$476,116
Payback Period:
3.51 Years
Per SF: Total Equity:
$606,908
Total Debt:
$1,374,824
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1815 86th Street
Bensonhurst, Brooklyn Property Summary Lot Size
8,221 SF
Building Size
14,680 SF
Annual Lease Price
$145,000
Per SF
$9.88
ww The vacant property was leased in January, 2014 ww REDA Group is developing a shopping center that will contain 8,140 SF of rentable space on the ground floor and 6,540 SF of rentable space for an education facility on the second floor ww The property is located on a corner lot in a prime retail corridor with lots of foot traffic ww Construction is slated to begin in April, 2014 and leasing is currently in progress
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1815 86th Street LEASE & CONSTRUCTION
REFINANCE & OPERATION
PROJECTED SALE
1/1/14 – 9/31/15
10/1/15 – 9/31/19
10/1/19
Lease Payment:
$145,000
Year 1 Blended Rent/SF:
$41/SF
Terminal NOI:
$461,733
Attorney’s Fees:
$5,000
Year 1 NOI:
$423,516
Exit Cap. Rate:
7.5%
Hard Costs:
$2,202,000
Cap. Rate:
7.5%
Implied Value:
$6,156,437
Soft Costs:
$484,440
Implied Value:
$5,646,880
Cost of Sale (2%):
($123,129)
Mortgage Costs:
$202,782
LTV:
70%
Sale Proceeds:
$6,033,308
Property Taxes & Insurance:
$64,195
Refinance Amount:
$3,952,816
Debt Outstanding:
($3,723,448)
Total Costs:
$3,103,416
Loan Costs:
($158,113)
Equity Proceeds:
$2,309,861
$211.40
Construction Loan Assumption:
($2,128,226)
Refi Equity Cash-Out:
$1,666,477
Operating Cash Flow:
$707,336
Project IRR:
58%
Net Cash Flow:
$3,708,483
Net Present Value @15%:
$1,691,955
Payback Period:
2.75 Years
Per SF: Total Equity:
$975,190
Total Debt:
$2,128,226
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