Mamaroneck, NY

Realized Deal : Sheldrake Lofts

Sponsored By Halpern Real Estate Ventures

Risk Profile
Opportunistic
Amount Invested
$450,000
Targeted IRR
22%
Actual IRR*
23.9%
Targeted Equity Multiple
1.81x
Actual Equity Multiple*
1.7x
Targeted Hold Period
3.0 years
Actual Hold Period
2.4 years

In August 2017, Halpern Real Estate Ventures (HREV) launched an offering for a 100-unit, transit-oriented, multifamily development in Mamaroneck, New York (Westchester County). 

HREV had originally acquired the site through a bankruptcy auction in February 2013 and by the time the deal was published on the CrowdStreet Marketplace, the construction loan had been finalized, a GMP construction contract had been executed, and construction was underway.

The business plan called for the construction of three buildings with a total of 96 units and four townhouses comprising 90,865 net rentable square feet. Given the unique location and proximity to New York City, HREV planned to position the asset as a higher-end, urban lifestyle project, for which the market would be willing to pay a premium.

Project Timeline

Project Branding

December 2017

At the end of 2017, with construction underway, HREV branded the project as “The Mason MVS (Mamaroneck Village Station)” which captured the architecture of the project, aesthetic of the neighborhood, as well as the immediate proximity to the Mamaroneck train station. As a component to the marketing and leasing efforts, HREV also began focusing on developing the amenity program, which would help promote an environment of co-working, recreation, sustainability, and wellness.

First Certificate of Occupancy

March 2019

HREV reported that the project had received its first certificate of occupancy for the main building and that, to-date, leasing momentum had been outperforming projections. At the same time, construction progress experienced some contractor delays and the remaining two buildings were now expected to be completed by May and June, approximately seven to ten months behind schedule. As a result, HREV was working closely with the contractor to produce recovery plans, which had continued to slip.

Construction Completed

October 2019

HREV reported that construction was largely completed and that all buildings were substantially occupied. Leasing was outperforming projections (property was 95% leased, with current in-place rents 15.1% higher than original underwriting) and an application for permanent financing had been executed. The permanent loan ultimately produced excess proceeds, resulting in a sizable distribution to investors in January 2020.

Final Outcome

Favorable market conditions, including strong demand and price appreciation in the surrounding area, quality construction, and the irreplaceable nature of the asset helped HREV complete a successful recapitalization of the asset in February 2020, translating into overall strong returns for investors including a higher-than-projected IRR.

*Net of fees.

This report contains explanations of a series of events associated with Halpern Real Estate Ventures’ Sheldrake Lofts offering that resulted in an approximate 70% (net of fees) absolute return on original equity to investors (including those from the CrowdStreet Marketplace). Certain aspects of the report such as dates of major events and the final outcome are easily verifiable while others, particularly underlying reasons behind the sponsor’s business plan execution, are not. 

The report partially relies upon the sponsor’s explanations, the information contained within sponsor-produced quarterly reports, and conference calls. This analysis is not an assertion of independently verified facts but, rather, is for informational purposes only, to convey CrowdStreet’s understanding of what transpired.

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