January 19, 2026
Re: UREF Questions and Answers - Clarification and Context Regarding 3129 Fenton Avenue, Bronx, NY
Dear Investor:
Thank you for your above question (via text: 1-19-26).
Yes, the Fund can buy you out before year-end.
This would be accomplished through the execution of a Share Purchase Agreement, with a $1,000 deposit payable at signing (this week) and the remaining balance due on or before December 31.
Consistent with Fund policy, [ no profit or premium is paid ] on share repurchases—the transaction would be a straight redemption of shares (and you must have more than three years in as an investor - which you do).
I am interested in reducing the investor equity (capital) by an additional $80,000 to a total of $400,000 before 2031.
On April 30, 2025, I personally acquired the property located at 3129 Fenton Avenue, Bronx, NY for a total consideration of $1,199,461.
This acquisition was structured through the assumption of both secured and unsecured obligations, rather than a traditional cash purchase.
Specifically, I assumed $586,127 in secured debt, consisting of $329,809 owed to Planet Home Lending, LLC and $256,318 owed to BREF Debt Capital, LLC.
It is important to note that BREF Debt Capital, LLC, the senior debt investor on the property, funded the majority of the renovation costs at an annual interest rate of 10%.
To date, BREF Debt Capital, LLC has not received a single dollar of repayment, neither principal nor interest.
As a result, renovation-related debt has continued to accrue while the property’s operating losses persisted, further straining cash flow and materially increasing the financial risk profile of the asset.
I assumed $613,334 in unsecured debt by forgoing $613,334 in accrued and future management fees (at $60,000 per year per our operating agreement) that were otherwise owed to me by the Urban Real Estate Fund, LLC.
This total consideration exceeded the property’s estimated market value by approximately $494,294, based on a Redfin valuation of $705,167 at the time of acquisition (see below photo).
Detailed financial disclosures related to this transaction are provided on pages 20 and 21 of the UREF Financial Report 2025.
During multiple investor meetings, I could have benefited from stronger support for retaining Fenton Avenue on the Fund’s balance sheet.
However, the economic reality of the asset made that position increasingly difficult to defend.
Operating expenses and debt service were consuming a disproportionate share of the Fund’s investment income.
Moreover, a significant number of investors—particularly those with the largest capital commitments—expressed a clear preference that the property be removed from the Fund’s balance sheet to reduce risk and preserve liquidity.
While I could have rejected those demands, I was simultaneously facing repeated rejections from UREF investors when requesting additional capital to cover ongoing operating costs and annual debt service related to the property.
Without new capital from existing investors, I was forced to identify an alternative solution to stabilize the asset.
As of today, the property continues to operate at a loss of more than $1,000 per month.
Although the mortgage has historically been supported by Section 8 rental income, the financial gap is widening.
On February 1, the monthly mortgage payment increases by approximately $700, rising to $3,958 per month, which is $48 more than the total Section 8 rent received.
In addition, winter operating costs significantly increase expenses.
For example, the November heat and hot water bill from Con Edison alone totaled $586, and this figure does not include the water bill, which is due on a quarterly basis.
Compounding these pressures, the outstanding principal balance associated with renovation-related financing has grown to approximately $248,000, accruing interest at an annual rate of 10%.
At the time this debt was incurred, the property’s market value remained approximately $705,000, creating an increasingly unfavorable leverage profile.
The estimated cost to legally convert the property from a one-family residence into a two-family home is approximately $75,000.
By legally converting the property from a one-family residence into a two-family home, the projected monthly rental income would increase by approximately $2,000 per month.
This incremental income would materially improve the property’s cash flow profile, allowing operating expenses and debt service obligations to be brought more closely into alignment.
In practical terms, the additional rental revenue would substantially reduce—or potentially eliminate—the current monthly operating losses, improve debt coverage ratios, and create a more sustainable long-term financial structure for the asset.
Over a five- to ten-year horizon, the plan is to demolish the existing structure and construct a four-unit residential building on the 50′ x 100′ lot at a cost of more than Two Million Dollars.
Despite multiple discussions, none of the UREF investors were willing to contribute the necessary capital to fund this conversion.
This became a point of significant disagreement, as many investors strongly opposed deploying investment income toward Fenton Avenue when the Fund had opportunities to earn 50% returns by investing with experienced Black real estate entrepreneurs.
Faced with persistent operating losses, rising debt service, lack of internal capital support, and clear investor opposition, I made the decision to remove the property from the Fund and pursue a different ownership and capital structure.
Accordingly, I partnered with an [ Asian family ] who has already invested more than $100,000 into the project and has expressed a willingness to provide additional capital to complete the legal two-family conversion.
This partnership provides the financial flexibility and long-term commitment that the property requires but could not secure within the Fund structure.
This decision was not made lightly.
It was driven by the responsibility to protect the Fund’s balance sheet, respect investor preferences, and ensure that the property itself has a viable path forward.
Sincerely,
Thomas Lopez-PierreFund ManagerUrban Real Estate Fund, LLC
Licensed Real Estate BrokerLopez-Pierre Realty, LLC
646-527-1116info@urbanrealestatefund.com
Re: UREF Questions and Answers - Clarification and Context Regarding 3129 Fenton Avenue, Bronx, NY
Dear Investor:
Thank you for your above question (via text: 1-19-26).
Yes, the Fund can buy you out before year-end.
This would be accomplished through the execution of a Share Purchase Agreement, with a $1,000 deposit payable at signing (this week) and the remaining balance due on or before December 31.
Consistent with Fund policy, [ no profit or premium is paid ] on share repurchases—the transaction would be a straight redemption of shares (and you must have more than three years in as an investor - which you do).
I am interested in reducing the investor equity (capital) by an additional $80,000 to a total of $400,000 before 2031.
On April 30, 2025, I personally acquired the property located at 3129 Fenton Avenue, Bronx, NY for a total consideration of $1,199,461.
This acquisition was structured through the assumption of both secured and unsecured obligations, rather than a traditional cash purchase.
Specifically, I assumed $586,127 in secured debt, consisting of $329,809 owed to Planet Home Lending, LLC and $256,318 owed to BREF Debt Capital, LLC.
It is important to note that BREF Debt Capital, LLC, the senior debt investor on the property, funded the majority of the renovation costs at an annual interest rate of 10%.
To date, BREF Debt Capital, LLC has not received a single dollar of repayment, neither principal nor interest.
As a result, renovation-related debt has continued to accrue while the property’s operating losses persisted, further straining cash flow and materially increasing the financial risk profile of the asset.
I assumed $613,334 in unsecured debt by forgoing $613,334 in accrued and future management fees (at $60,000 per year per our operating agreement) that were otherwise owed to me by the Urban Real Estate Fund, LLC.
This total consideration exceeded the property’s estimated market value by approximately $494,294, based on a Redfin valuation of $705,167 at the time of acquisition (see below photo).
Detailed financial disclosures related to this transaction are provided on pages 20 and 21 of the UREF Financial Report 2025.
During multiple investor meetings, I could have benefited from stronger support for retaining Fenton Avenue on the Fund’s balance sheet.
However, the economic reality of the asset made that position increasingly difficult to defend.
Operating expenses and debt service were consuming a disproportionate share of the Fund’s investment income.
Moreover, a significant number of investors—particularly those with the largest capital commitments—expressed a clear preference that the property be removed from the Fund’s balance sheet to reduce risk and preserve liquidity.
While I could have rejected those demands, I was simultaneously facing repeated rejections from UREF investors when requesting additional capital to cover ongoing operating costs and annual debt service related to the property.
Without new capital from existing investors, I was forced to identify an alternative solution to stabilize the asset.
As of today, the property continues to operate at a loss of more than $1,000 per month.
Although the mortgage has historically been supported by Section 8 rental income, the financial gap is widening.
On February 1, the monthly mortgage payment increases by approximately $700, rising to $3,958 per month, which is $48 more than the total Section 8 rent received.
In addition, winter operating costs significantly increase expenses.
For example, the November heat and hot water bill from Con Edison alone totaled $586, and this figure does not include the water bill, which is due on a quarterly basis.
Compounding these pressures, the outstanding principal balance associated with renovation-related financing has grown to approximately $248,000, accruing interest at an annual rate of 10%.
At the time this debt was incurred, the property’s market value remained approximately $705,000, creating an increasingly unfavorable leverage profile.
The estimated cost to legally convert the property from a one-family residence into a two-family home is approximately $75,000.
By legally converting the property from a one-family residence into a two-family home, the projected monthly rental income would increase by approximately $2,000 per month.
This incremental income would materially improve the property’s cash flow profile, allowing operating expenses and debt service obligations to be brought more closely into alignment.
In practical terms, the additional rental revenue would substantially reduce—or potentially eliminate—the current monthly operating losses, improve debt coverage ratios, and create a more sustainable long-term financial structure for the asset.
Over a five- to ten-year horizon, the plan is to demolish the existing structure and construct a four-unit residential building on the 50′ x 100′ lot at a cost of more than Two Million Dollars.
Despite multiple discussions, none of the UREF investors were willing to contribute the necessary capital to fund this conversion.
This became a point of significant disagreement, as many investors strongly opposed deploying investment income toward Fenton Avenue when the Fund had opportunities to earn 50% returns by investing with experienced Black real estate entrepreneurs.
Faced with persistent operating losses, rising debt service, lack of internal capital support, and clear investor opposition, I made the decision to remove the property from the Fund and pursue a different ownership and capital structure.
Accordingly, I partnered with an [ Asian family ] who has already invested more than $100,000 into the project and has expressed a willingness to provide additional capital to complete the legal two-family conversion.
This partnership provides the financial flexibility and long-term commitment that the property requires but could not secure within the Fund structure.
This decision was not made lightly.
It was driven by the responsibility to protect the Fund’s balance sheet, respect investor preferences, and ensure that the property itself has a viable path forward.
Sincerely,
Thomas Lopez-PierreFund ManagerUrban Real Estate Fund, LLC
Licensed Real Estate BrokerLopez-Pierre Realty, LLC
646-527-1116info@urbanrealestatefund.com
This is not an offer to sell or a solicitation of any offer to buy any securities. Offers are made only by prospectus or other offering materials. To obtain further information, you must complete our investor questionnaire and meet the suitability standards required by law. Fair Housing Notice: The Urban Real Estate Fund, LLC, Urban Real Estate Fund II, LLC, Black Doctors Real Estate Fund, LLC, the Social impact Real Estate Debt Fund, LLC and the Black Real Estate Forum, LLC, are committed to compliance with all federal, state, and local fair housing laws. The Urban Real Estate Fund, LLC, Urban Real Estate Fund II, LLC, Black Doctors Real Estate Fund, LLC, the Social impact Real Estate Debt Fund, LLC and the Black Real Estate Forum, LLC, will not discriminate against any person because of race, color, religion, national origin, sex, familial status, disability, or any other specific classes protected by applicable laws with regard to rentals and/or sales of housing.