Attractive New York Property now Offered for European Investors

Attractive New York Property
now Offered for
European Investors
Uprets STO
We are now able to offer to European investors a New York Property, the Oosten property in Williamsburg, Brooklyn. This luxury development project features 216 units and is Xin Development Group's first project in New York City. The project features 1, 2 and 3-bedroom units. Xin is a NYSE listed company: NYSE:XIN.

The Oosten condominium project was designed by Piet Boon, a renowned Dutch architect, and caters to all the needs of a prospective home-seeker through its variety of units. The project can be described as a blend of modern architecture and lush amenities to take luxury living in New York City to a new level.
The property, located at 429 Kent Avenue, is an 8-story, rare full-city block development comprising 216 units across 332,123 SF (1,538/SF/Unit). The building's glass façade – with gunmetal-framed floor-to-ceiling windows – gives every residence a modern touch, as well as a taste of the original Williamsburg. The unit mix of 1-bedroom, 2-bedroom, 3-bedroom, 5-bedroom, and 6-bedroom units ranging from 686-5,098 SF provide spacious units for families and young professionals. To date, 177 units have sold, with the other 39 units being withheld for this offering. The Oosten benefits from a 421a tax abatement that reduces the real estate tax burden for condominium unit owners, and expires in 2032.

New York City has continued to be an attractive market for real estate investors following the financial crisis in 2008. The median sales price in Brooklyn has been trending higher over the last 20 years and Williamsburg has become one of the most sought-after sub-markets in all of New York City.

Median Sales Price in New York: Compound Annual Growth Rate: 4.55% for the last 9 years
Multifamily rents in Williamsburg have experienced positive momentum. Over the past year, rents for studio units, 1-bedroom units, and 2-bedroom units have increased 15.5%, 13.3%, and 12.5% respectively. During the second quarter of 2019, 1,475 condominium units were sold in Brooklyn. 1-bedroom units (38%) and 2-bedroom units (33%) comprised most of the activity.
New York Property tokenization
Also, 269 condominium units were sold in Williamsburg and Greenpoint. The number of sales represented a 48% increase year-over-year.

The median price in Williamsburg for resale units is $1.1 million ($1,203/SF), rising 4% year over year. For new development units it is $1.2 million ($1,360/SF) rising 20% year over year.

The project will be conducted as an STO (a Security Token Offering) where project shares will be issued as tokens on the blockchain. Xin's technology partner, UPRETS, will be responsible for this. Through the UPRETS tokenized capital raising platform, investors in the fund will enjoy additional benefits beyond what a traditional real estate fund can offer.

The process of issuing project shares as tokens is called tokenization. Tokenization offers several benefits, such as much more efficient transfer, settlement and trading of project shares, as well as more secure, transparent and less expensive management processes in relation to the property. The tokenization process is also expected to bring about significantly increased liquidity, both locally and globally. Tokenization is predicted by many industry experts to be the future of the real estate industry as well as the larger financial industry.

The securities in this issuance are shares of the real estate fund, which will, in turn, be represented by a token. These shares will be offered privately at the set subscription price to accredited investors. All accepted subscribers will then be admitted to this fund as token-holders or shareholders.

UPRETS is going to work with a public market to list the shares that will be sold to various subscribers. The transfer of shares will initially be regulated by the Fund.

Even though tokenization of a real estate property makes it possible to have fractional ownership, it is not the only reason to tokenize an asset. The aim of UPRETS is not limited to The Oosten property, the company will tokenize other real estate globally in cities such as Dubai, London, and Singapore, some of these projects in collaboration with DigiShares.

DigiShares represents UPRETS in Europe and will be supporting a subsequent tokenization project together with UPRETS of a European property.