Green Street Metropolitan Assemblage

The Metropolitan Assemblage is located in a rare OZ census tract in the booming neighborhood of Williamsburg in Brooklyn, NY. When complete, this ground-up development project will comprise 130,000 square feet, and approximately 150 residential units, to be constructed in two phases.

• Phase I: In years 1-3, Green Street will develop 554-558 Metropolitan Avenue (70 units, $49m cost, $77m value on completion).
• Phase II: In years 4-5, Green Street will develop 536 & 546 Metropolitan Avenue (~80 units, $44.5m cost, $76m value on completion).

Opportunity Zone Deal Metrics:

• Total projected cost of $93m against a projected value on completion of $153m, a 64% margin-on-cost.
• Land basis of $211/SF, considerably below an estimated market value of ~$350/SF, following two NYC up-zonings (485-x and City of Yes) shortly after acquisition.
• Projected return of ~1.2x of initial investor capital upon completion of Phase II (year 5), without any dilution in ownership.
• Investor net IRR is projected at 16.6% over a 15-year period (17.7% including the OZ deferral benefit).
• This implies a pre-tax (i.e., non-OZ) equivalent IRR of 21.7%.
• Investor net equity multiple is 4.10, or a 5.65 pre-tax (i.e., non-OZ) equivalent.
• Sponsors personally guarantee the construction loan, are investing at least $3m of their own equity alongside investors, and charge no acquisition or development fees aside from one project manager's salary; sponsor compensation is performance-based and subordinate to a 10% compounded preferred return to investors.