Mortgage Debt Fund 627
Type: Debt
Target: $28,580,000
Annual Return: 8.00% - 8.25%
Min-invest Amount: $10,000
Duration: 6 – 24 Months
| Fund Type | Private Equity Fund |
| Offering Amount | $28,580,000 |
| Estimated Return | 8.00 – 8.25% Annualized Return*1 |
| Investment Type | Mortgage Loan |
| Unit Price | $10,000 per Subscription Unit |
| Offering Date | November 2026 |
| Investment Timeline | 6 – 24 Months*2 |
| Dividend Schedule | Prepaid per 6 Months*3 |
*1 8.00% Annualized Return for Investment of 1-19 Units; 8.25% Annualized Return for Investment above 20 Units;
*2 Investors will receive a minimum of 6 months of dividend; dividends will be calculated in terms of days till Borrower repays the loan;
*3 After the first dividend period, Borrower owns 3 extension options, and investors will receive dividends accordingly at the same dividend rate.
- Prime-located in the heart of Downtown Brooklyn with excellent transit access, this project features a 28-story mixed-use building totaling 99,960 sq. ft. in a neighborhood highly favored by young NYC professionals.
- The development includes commercial rental spaces from the cellar through the 3rd floor, for-sale boutique condominiums on floors 4–25 and 27–28 with a focus on practical 1-bedroom and studio layouts, and dedicated resident amenities on the sub-cellar level and the entire 26th floor. Following land acquisition in September 2025 and design approval in April 2026, demolition of the existing structure is currently ongoing, with foundation work set to begin shortly. The proposed construction completion is anticipated in the second half of 2028.
| Address | 245 Duffield St, Brooklyn, NY 11201 |
| Area | Downtown Brooklyn, Brooklyn, New York |
| Lot Area | 8,330 Sqft |
| Total Building Area | 99,960 Sqft |
| Intended Use | A 25-story building featuring 158 condominium units, and commercial spaces located on the cellar level and floors 1 through 3. |
| Expected Dividend Calendar | |||||||
|---|---|---|---|---|---|---|---|
| Round of Dividend | Round of Investment | Funding Amount | Dividend Date *1 | Counting Date | Ending Date | Dividend Period | Note |
| First | First Batch | $1,500,000 | No Later Than 11/30/2026 | 11/16/2026 | 5/15/2027 | 181 Days | Prepaid Dividend*2 |
| Second Batch | $1,000,000 | No Later Than 12/30/2026 | 12/16/2026 | 5/15/2027 | 151 Days | Prepaid Dividend | |
| Third Batch | $1,000,000 | No Later Than 1/30/2027 | 1/16/2027 | 5/15/2027 | 120 Days | Prepaid Dividend | |
| Fourth Batch | $1,000,000 | No Later Than 2/30/2027 | 2/16/2027 | 5/15/2027 | 89 Days | Prepaid Dividend | |
| Fifth Batch | $1,500,000 | No Later Than 3/30/2027 | 3/16/2027 | 5/15/2027 | 61 Days | Prepaid Dividend | |
| Second | - | - | No Later Than 5/30/2027 | 5/16/2027 | 11/15/2027 | 184 Days | Extension Option Owned by Borrower *3 |
| Third | - | - | No Later Than 11/30/2027 | 11/16/2027 | 5/15/2028 | 182 Days | Extension Option Owned by Borrower |
| Fourth | - | - | No Later Than 5/30/2028 | 5/16/2028 | 11/15/2028 | 184 Days | Extension Option Owned by Borrower |
*1 In case of holidays and non-working days, the dividend date will be automatically postponed to the next working day;
*2 Investors will receive a minimum of 6 months of dividend; dividends will be calculated in terms of days till Borrower repays the loan;
*3 After the first dividend period, Borrower owns 3 extension options, and investors will receive dividends accordingly at the same dividend rate.
- According to the appraisal report provided by third-party appraiser Colliers International, the post-completion market value of the underlying project is approximately $212,100,000; based on the cost projection provided by the borrower, the estimated cost value of the project is approximately $156,592,395. Demolition of the existing structure is currently ongoing, with foundation work set to begin shortly, and the project construction is expected to be completed in the second half of 2028.
- The short-to-medium-term construction loan originated by CrowdFunz Fund 627 is structured as loan syndication, sharing the first-position mortgage claim with Ponce Bank. CrowdFunz Fund 858, which has previously completed its investment, holds a pledge of 100% equity of the project entity owning the property. Additionally, the sponsor's key persons will provide unlimited personal guaranties to CrowdFunz Fund 627 and Fund 858.
- The developer of the underlying project possesses over 15 years of investment experience in the New York real estate market, alongside extensive real estate development experience in China. In recent years, the developer has actively expanded its presence in the local New York market, having completed 6 development projects within New York City, with 3 additional projects currently under development.
- CrowdFunz Fund 627 marks the 7th cooperation between CrowdFunz and the developer, following Fund 830, 834, 837, 845, 851, and Fund 858. Both parties aim to leverage this partnership to assist the developer in fulfilling its development plan while providing fund investors with suitable investment opportunities to share in the returns of local real estate development.
- The total financing amount for Fund 627 is $28,580,000, of which $22,580,000 investment will be provided by institutional investors and $6,000,000 will be open to retail investors, divided into five batches. Batch 1 will raise $1,500,000; Batch 2, 3, and 4 will raise $1,000,000 each; and Batch 5 will raise $1,500,000. The borrower expects to use the loan proceeds provided by CrowdFunz Fund 627 to cover construction costs and project expenditures.
- Upon project completion, the sponsor plans to repay the loan originated by CrowdFunz Fund 627 through refinancing with a commercial bank or cash flows from other real properties it holds.
* Building Rendering Photo.
Capital Structure of CrowdFunz Fund 627
Capital Stack
| Capital Stack | Percentage | ||
|---|---|---|---|
| Mortgage from Commercial Bank | $75,000,000 | 47.90% | |
| Mortgage from CrowdFunz Fund 627 | $28,580,000 | 18.25% | |
| Loan provided by CrowdFunz Fund 858 | $8,000,000 | 5.11% | |
| Equity Value | $45,012,395 | 28.74% | |
| Property Valuation | $156,592,395.00 | 100.00% | |
- According to the appraisal report by third-party appraiser Colliers International, the project's as-completed market value is approximately $212,100,000; based on the cost projection provided by the borrower, the estimated cost value of the project is approximately $156,592,395. Demolition of the existing structure is currently ongoing, and the project construction is expected to be completed in the second half of 2028.
- Upon entry of CrowdFunz Fund 627, the capital structure comprises a $75,000,000 senior bank mortgage loan (47.90%), $28,580,000 from CrowdFunz Fund 627 (18.25%), $8,000,000 from CrowdFunz Fund 858 (5.11%), and $45,012,395 of the borrower’ s equity (28.74%). This results in a loan-to-cost ratio of 71.26%, well within standard industry leverage benchmarks.
- Additionally, the borrower's key persons will provide unlimited personal guaranties to timely pay the principal and interests. In the event of default, CrowdFunz may pursue legal remedies against the guarantor’ s personal assets.
Demographics in Zip Code Area
| Fort Greene/Brooklyn | |
|---|---|
| Population | 125,285 |
| Born in | New York State (38.30%) Foreign-born (22.40%) |
| Race | Caucasian (47.80%) African American (18.30%) Latino (14.40%) Asian (10.70%) |
| Child-bearing (Under 18) | 11.20% |
| Unemployment Rate | 5.30% |
* Source: NYU Furman Center and U.S. Census Bureau, in October 2026.
- According to U.S. Census Bureau data utilized by the NYU Furman Center, the Fort Greene/Brooklyn Heights neighborhood, where Downtown Brooklyn is located, features a diverse population. White residents constitute the largest demographic group at 47.80%, followed by Black residents at 18.30% and Hispanic residents at 14.40%, with Asian residents comprising a smaller share at 10.70%.
- The area's population is predominantly native-born to New York State, accounting for 38.30%, while foreign-born residents represent 22.40%. The median age is approximately 40 years old, consisting mainly of local young and middle-aged professionals with steady income. Households with children under 18 account for 11.20% of the population. In recent years, new incoming residents have largely been younger, middle-class NYC professionals who primarily rent.
Local Real Estate Market Overview
- According to U.S. Census Bureau data utilized by the NYU Furman Center, as of year-end 2024, the owner-occupancy rate for residential properties in the Fort Greene/Brooklyn Heights district stands at 29.90%, with the market remaining predominantly rental-driven. The area has 70,986 registered residential units, maintaining a low rental vacancy rate of 4.00%.
- New residential supply peaked in 2019 and 2022, with building permits reaching 2,154 and 5,109 units, respectively. Certificates of occupancy for new residential units were issued for 1,353 units in 2022, 1,137 units in 2023, and 1,756 units in 2024.
- Since 2019, condominiums have represented the highest transaction volume among residential properties in the area, with 460 units sold in 2024, compared to 139 sales across other residential property types.
- As of year-end 2024, the median sales price for single-family homes reached $4,600,000, while the median sales price for condominiums stood at $1,392,500. Overall residential real estate prices in the area have appreciated by approximately 190% compared to 2009 levels.
* Source: NYU Furman Center and U.S. Census Bureau, in October 2026.
Comparable Land Sold
According to data provided by third-party appraiser Colliers International, the average price of comparable land sold in the surrounding area currently stands at $292.59 per FAR Sqft.
* Source: Appraisal Report Provided by Colliers International.
Comparable Condominium Units for Sale
| Property address | Floorplan | Built in | Area (ft²) | Sold for | Unit Price ($/ft²) | Source |
|---|---|---|---|---|---|---|
| 10 City Point #PHE | 3B2B | 2017 | 1,499 | $3,495,000 | $2,331.55/ft² | Zillow |
| 10 City Point #51D | 3B3B | 2017 | 1,454 | $3,412,980 | $2,347.30/ft² | Zillow |
| 10 City Point #23E | 2B2B | 2017 | 1,185 | $2,132,610 | $1,799.67/ft² | Zillow |
| 10 City Point #24F | 2B2B | 2017 | 1,185 | $2,116,000 | $1,785.65/ft² | Zillow |
| 10 City Point #51G | 1B1B | 2017 | 754 | $1,557,920 | $2,066.21/ft² | Zillow |
| 1 Clinton St #19A | 3B3B | 2020 | 1,933 | $3,999,000 | $2,068.80/ft² | Zillow |
| 50 Bridge Park Dr #17E | 2B2B | 2019 | 1,214 | $2,085,000 | $1,717.46/ft² | Zillow |
| 50 Bridge Park Dr #21D | 2B3B | 2019 | 1,489 | $2,650,000 | $1,779.72/ft² | Zillow |
According to the listing data on Zillow, the average asking price for comparable condominium units currently listed in the surrounding area is $1,987.05 per Sqft.
* Data source: Zillow, Collated and Calculated by CrowdFunz.
Valuation
- According to the appraisal report by third-party appraiser Colliers International, the project's as-completed market value is approximately $212,100,000; based on the cost projection provided by the borrower, the estimated cost value of the project is approximately $156,592,395.
- Based on the current development progress and cost structure, CrowdFunz believes that the project's valuation to be consistent with the anticipated cost value, establishing an appraised value of $156,592,395. Details are outlined in the table below.
| Cost Projection | |
|---|---|
| Land Costs | $37,000,000 |
| Hard Costs | $70,000,000 |
| Soft & Financial Costs | $32,000,000 |
| Marketing Costs | $12,000,000 |
| Other Costs | $5,592,395 |
| Total Cost | $156,592,395 |
| Capital Stack Projection | |
|---|---|
| Construction Loan | $75,000,000 |
| Fund 627 Loan | $28,580,000 |
| Fund 858 Loan | $8,000,000 |
| Borrower Equity | $45,012,395 |
| Total Capital | $156,592,395 |
* Source; Cost Projections Provided by the Borrower.
* Source: Appraisal Report Provided by Colliers International.
Location
Located in the heart of Downtown Brooklyn, the target property is just a 5-minute walk from the Hoyt St subway station (Metro line 2/3/4/5 and A/C/G) and the DeKalb Av subway station (B/D/N/Q/R/W). Transportation options offer rapid connectivity, reaching Lower Manhattan in 15 minutes and Midtown Manhattan in 25 minutes by subway, while LaGuardia Airport and JFK International Airport are accessible within a 25-minute and 45-minute drive, respectively.
Transportation
- Subway: Metro 2/3/4, A/C/G, B/D/N/Q/R/W
- To Midtown Manhattan: Around 25 minute
- To JFK: Around 45-minute drive
- To LGA: Around 25-minute drive
Schools
Located in Kings County School District #15, the project benefits from a robust public education network comprising 52 schools, including 27 elementary schools, 11 middle schools, and 14 high schools. The area is served by top-rated institutions, with GreatSchools 9-rated elementary schools such as Ps 29 John M Harrigan, P.S. 172 Beacon School Of Excellence, and Ps 321 William Penn, alongside highly rated middle schools MS 442 Carroll Gardens School for Innovation and New Voices School Of Academic And Creative Arts, as well as the 8-rated Millennium Brooklyn High School.
Living
The residential population in this area primarily consists of single households under the age of 40, characterized by demographic diversity and strong purchasing power. The surrounding commercial district offers a wide variety of international restaurants, along with a comprehensive array of supermarkets and retail shops catering to residents' daily needs.
Entertainment
The project area offers abundant recreational facilities for residents, with nearby parks including Commodore Barry Park, Fort Greene Park, and Cadman Plaza Park. The neighborhood is also well-served by a diverse array of gyms and public sports venues. In addition to local amenities, residents enjoy seamless transit connectivity to various Manhattan neighborhoods for an enriched urban lifestyle.
* From Google Map.
* From Google.
Borrower：FBL Development
Website：www.fbldevelopment.com
Past Co-op：Fund 830 / Fund 834 / Fund 837 / Fund 845 / Fund 851 / Fund 858
* Rendering photos of borrower’ s recent projects.
Previously Completed Projects：
* Renderings and photographs of the borrower's previously completed projects.
- The mortgage originated by CrowdFunz Fund 627 is structured as a loan syndication, sharing first-lien mortgage claim with Ponce Bank. Based on the cost projection provided by the borrower, the estimated cost value of the project is approximately $156,592,395. The project is currently undergoing demolition of the existing structure, with foundation work set to commence shortly, and full construction completion is anticipated in the second half of 2028.
- The underlying property is prime-located in the heart of Downtown Brooklyn, the third-largest central business district in New York City after Midtown and Lower Manhattan. Driven by a recent wave of new development, the entire neighborhood has undergone a major revitalization. Residents enjoy convenient access to nearly all New York City subway lines passing through Brooklyn, allowing them to reach various areas of Manhattan within 30 minutes for an enriched urban lifestyle.
- The borrower has extensive local development experience and a solid commercial credit history. With over 15 years of investment experience in the New York real estate market alongside rich development expertise in China, the borrower has successfully cooperated with CrowdFunz 6 times, maintaining a reliable record of on-time interest and principal payments.
- Consequently, CrowdFunz considers that the short-to-medium-term debt investment of Fund 627 has relative a low default risk under clear loan agreements and legal frameworks, making it suitable for investors seeking fixed-income investment opportunities.
* Rendering Photos of Building Interior.
CrowdFunz 627 Project Rating
Subscription Agreement (Only available to accredited investors)
Appraisal (Only available to accredited investors)