NYCE’s TEMPLE II

TEMPLE II is Phase II & III of the 105-bed tech-powered student housing development “Philicon Square,” directly across Temple University’s football training field and two blocks from campus.

Powered by a formal partnership between NYCE and Temple University, this development TEMPLE II includes a total of 88 co-living units/bedrooms. Tenants will lease individual bedrooms within the apartments.

The $79 Story…

Back in July of 2014, I arrived in NYC with no SSN, credit, bank account or any network. Just $79 in my PayPal account, making “ends meet” ($500 every three weeks) as a radio host and writer.

Without boring you with trivial boo-hoo details, fast forward to April 2016, I did my first deal, it quickly appraised north of $1 million shortly after and things went from there.

As of today, we’ve helped 5000+ first-time investors of color own a piece of prime real estate.

Because of how I started, we thought it would be fitting to bring it all full circle and help others kickstart their wealth-building journey the same way I did mine.

Press

OK, back to the property...

The first smart-home powered building by Temple University, Forbes called it “the Millennial’s wet dream.” Why, we’re not sure. We do know this, however: We’ve specifically designed and built it for the end user in mind.

Here are some images from TEMPLE I: The Tech Mansion

As part of the partnership with Temple University, Philicon Squareare part of NYCE’s initiative to:

• Create a Silicon Valley-style neighborhood for the creative community around campus
• Deliver a living environment conducive to creativity, entrepreneurship and job creation
• Provide a pathway for people of color to own a part of the gentrification
• 
  

PROGRESS: The property was acquired by NYCE in 2021. Construction began in the fall of 2021 with the demolition of the existing structure. TEMPLE II is expected to be completed in the 4th quarter of 2022

The Offering: TEMPLE II, Explained

By offering ownership during the construction period, we allow investors the opportunity to take part in the forced appreciation of the asset as construction progresses.

By offering ownership during the construction period, we allow investors the opportunity to take part in the value upside as construction progresses. Or, in layman’s terms, the further along you get, the more valuable the project becomes.

Partnering with Temple University’s entrepreneurship institute, we’re actively building a “Silicon Valley” mini-neighborhood for student entrepreneurs and creators.

Investment Timeline

TEMPLE I accepted investments during construction at a $1M pre-completion valuation. Three months later after construction was completed, the property appraised at $2,055,000.

Just like we did with TEMPLE I, NYCE has assumed the entitlement risk upfront; we’re allowing investors to come in during the construction period—after acquisition and soft costs—thus deferring risk while still allowing a piece of the upside.

Here’s a timeline on the project.

The Location

2201-2209 N. 11th Street, Philadelphia, PA (TEMPLE II) & 1023-1027 W. Susquehanna St., Philadelphia, PA (Phase 3)

Philicon Square is located right by Temple University’s campus, only two blocks from the classroom. In fact, directly from your window, you’ll get a sneak peak of Temple’s football team.

Campus offers an urban experience with many parks, bars, restaurants and coffee shops—all in the shadow of Temple University and just one mile from Fishtown, the “hottest neighborhood in America,” per Forbes.

A five-minute walk to class, students living at TEMPLE I enjoy easy access to Temple University and with the Temple U train station just two blocks away, downtown Philadelphia is less than a 10 minutes away.

Outside of campus life, the property is three blocks from the train that takes you directly to 30th Street Station, Philadelphia’s main transportation hub and Amtrak’s third-busiest station behind Union Station in DC and Penn Station in New York.

Booming Student-Housing Market

Temple University is one of the hottest real estate markets in the country. Sitting in a historic, gentrifying North Philadelphia neighborhood, Temple University has set application and enrollment records every year since 2013—creating insane demand for quality student housing products.

More than 88% of Temple students live off campus and occupancy in North Central Philadelphia was over 95% with the vast majority living in old townhouses.

TEMPLE II: Financial Projections

Upon completion, we intend to operate it as a student-housing co-living property where students rent individual bedrooms. The chart below provides our estimates for operating the property.

NOTE: Our rental assumptions are based on the Jan. 2022 TEMPLE I rent roll.

This graph contains forward-looking projections that cannot be guaranteed.

The Offering: Investor Returns

We are offering equity interests in the TEMPLE II development project. Investors will receive an 8% preferred return. In addition to having a piece of the project, investors will be able to track their investment in our NYCE app.

We are estimating that investors will receive a 12%-15% annualized IRR with a 36-month lock-up period. Investors will receive a return upon a sale or refinancing of the property, anticipated inside 36 months.

The following chart outlines the estimated returns based on a $1,000 investment at the 15% preferred return rate. NOTE: These are for illustrative purposes only and not a guarantee.

Investor Returns: How Investors Make Money

We are estimating that investors will receive a 12%-15% annualized IRR with a 36-month lock-up period. Investors will receive a return upon a sale or refinancing of the property, anticipated inside 36 months.

The following chart outlines the estimated returns based on a $1,000 investment at the 15% preferred return rate. NOTE: These are for illustrative purposes only and not a guarantee.

In addition, we may offer options for investors to buy/sell their positions in TEMPLE II (or other NYCE properties, subject to availability), offering liquidity. We’re currently in the process of taking TEMPLE I public on LEX, the Nasdaq-powered real estate trading platform.

Our Mission…

Millennials of color—women in particular—have been dealt one of the worst hands in recent history, inheriting a wealth gap that will take 228 years to close.

The main driver behind this wealth inequality is the fact that black and Hispanic communities don’t own real estate at the same rate.

We want to help ERASE this troubling trend.

According to Duke University, real estate/home ownership would narrow the racial wealth gap by 31%. So this is why we launched a mission to help marginalized groups become first-time investors.

Since April of 2020, over 5000 first-time investors have invested over $2.5M in our real estate portfolio—and we’ve grown our portfolio by 105%.

Our goal is to bring on over 100,000 Millennial moguls to co-own the real estate with us and collectively build generational wealth.