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Project Investor Update
39 Susan Drive
Chatham Township, Morris County, New Jersey
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Front elevation rendering of the approved design. Not the current site condition.
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Asset Type
Single Family Ground Up Construction
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Reporting Period
Q3 2026
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Report Date
August 26, 2026
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Prepared By
NNG Capital Fund
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Confidential. Prepared for existing investors of NNG Capital Fund. Projections are estimates based on information currently available and are not guarantees of any outcome.
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Section 01
Executive Dashboard
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Current Stage
Foundation Excavation
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Current Loan Balance
$320,656
of $1,701,807 committed
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Construction Funds Remaining
$1,381,151
Undrawn facility
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Appraised Value, Completed
$3,430,000
April 2026
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Foundation Target
Before Thanksgiving
Q4 2026
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Target to Market
May or June 2027
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Loan Maturity
Oct 28, 2027
14 months remaining
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Projected Profit Range
$465K to $940K
By sale price
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Project Status
MONITORING
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Approvals are complete and foundation excavation is underway. Persistent rain across New Jersey has delayed the excavator, which is the reason construction spending has been light to date. The build plan is sound. The schedule against an October 2027 loan maturity is the item we are watching.
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Where the Project Stands
Approvals are complete. 39 Susan Drive sits on a steep slope, which required a variance and a full set of municipal approvals. That work is done. The approved design is a modern residence built into the hillside with three levels of rear balconies and elevated views.
Foundation work is in progress. Foundation approval is complete and the excavator is digging out the site. Weeks of consecutive rain in New Jersey have slowed that work. The goal is a completed foundation before Thanksgiving, framing through the winter, then interior work while the weather is cold, with the house coming to market in May or June 2027.
The financing is conservative. The loan commits $1,701,807 against an appraised completed value of $3,430,000, an as repaired loan to value of 49.62%. Of that, $320,656 has been drawn to date and $1,381,151 remains available to fund construction. The loan is current with no late charges.
The market has cooperated. Four comparable Chatham Township homes closed between May and July 2026 from $3,250,000 to $3,850,000, each at or within 1.5% of asking, several within days of listing.
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Section 02
Loan Summary
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| Borrower and Guarantor | NNG Impact Opportunity Fund I, LLC |
| Lender and Servicer | Loan Funder LLC, Series 125716 and Superior Loan Servicing |
| Original Loan Amount | $1,701,807 |
| Current Principal Balance | $320,656 at 08/01/2026 |
| Construction Loan Commitment | $1,395,258 |
| Construction Draws Received | $14,107 |
| Construction Funds Remaining | $1,381,151 |
| Interest Rate and Type | 10.94% fixed, interest only |
| Monthly Interest, Current Balance | $3,021 |
| Monthly Interest, Fully Drawn | $15,515 |
| Note Date and Origination | April 28, 2026 |
| Loan Maturity Date | October 28, 2027 |
| Remaining Term | 14 months |
| Final Date for Lender Advances | September 1, 2027 |
| Extension Option | None in Loan Documents |
| Prepayment Penalty and Exit Fee | None, $0 |
| Loan to Value, As Repaired | 49.62% |
| Payment Status | Current, no late charges |
| Estimated Payoff at Sale, Fully Drawn | $1,701,807 |
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Loan Maturity
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Completion Cushion
Maturity less the target completion date ahead of a May 2027 listing
~6 months
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Exit Cushion
Maturity less an estimated closing, allowing normal marketing and closing time after a listing in May or June
~2 months
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Assessment
EXIT TIMING:
MONITORING
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Construction should complete comfortably before maturity. The exit is tighter. A listing in May or June leaves roughly two months between a normal closing and the October 28, 2027 balloon, and the loan documents contain no extension right. We intend to open an extension conversation with the lender in the first quarter of 2027 rather than at the deadline.
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One more date worth knowing. All lender advances must be requested by September 1, 2027. Construction spending after that date comes from fund capital rather than the loan. On the current plan, the build finishes well before that deadline.
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Section 03
Project Timeline
Stage 4 of 14 — Foundation (in progress)
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| Acquisition |
Foundation (now) |
Loan Maturity |
Blue = complete • Orange = in progress • Gray = upcoming • Dark red = loan maturity marker (Contract stage)
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Foundation Complete
Nov 2026
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Framing and Interior
Winter 2026 to 2027
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To Market
May or June 2027
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Loan Maturity
Oct 28, 2027
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Construction Progress
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Previous Stage
Variance, approvals and site clearing, complete
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Current Stage
Foundation excavation in progress, delayed by rain
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Next Stage
Foundation pour, then framing
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Since the last update. Municipal approvals were finished and foundation approval obtained. Site clearing and vegetation removal were completed, and the excavator began digging out for the foundation. Repeated weeks of rain across New Jersey have slowed that excavation, which is why construction draws remain light. To date, $14,107 of the $1,395,258 facility has been advanced. Spending accelerates once the foundation goes in.
The plan from here. Complete the foundation before Thanksgiving, frame through the winter, then close the house in and run interior trades while the weather is cold. That sequencing is what makes a listing in May or June 2027 achievable despite a winter build.
Why the slope matters. The grade drops roughly 28 feet from the street to the rear of the lot. That is the reason this site required a variance and the reason the foundation is the most demanding phase of the build. It is also the reason the finished home has three levels of rear balconies and views that the flat lots in Chatham cannot offer. Once the foundation is in, the structure is conventional and the schedule becomes far more predictable.
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Rear elevation showing three levels of balconies stepping down the hillside, with the lower level opening to grade.
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Side elevation with landscape leveling, from +417.95 at the street down to +390.00 at the rear of the site.
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Section 04
Project Walkthrough
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Watch the Project Update Video
Tap to view — opens in your browser
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| Video Date— |
Construction StageFoundation Excavation |
Presented By— |
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Video Highlights
| The steep slope required a variance, which has been obtained |
| Foundation approval is complete; the excavator is digging out the site |
| Weeks of consecutive rain in New Jersey have delayed the excavation |
| Goal is a completed foundation before Thanksgiving, framing through the winter |
| Target to market is May or June 2027 |
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Section 05
Market Value and Comparable Sales
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| 206 Longwood Ave |
$3,850,000 |
Closed 05/15/2026 • 7 bd, 7.1 ba • 7,221 sq. ft. • $533 / sq. ft.
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| 51 Glenmere Dr |
$3,495,000 |
Closed 07/24/2026 • 6 bd, 6.2 ba
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Closed 07/15/2026 • 7 bd, 6.1 ba • 5,500 sq. ft. • $627 / sq. ft.
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Closed 06/05/2026 • 6 bd, 6.1 ba
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| 336 Fairmount Ave Active |
$2,975,000 |
Listed 07/31/2026 • 6 bd, 6.1 ba • 7,200 sq. ft. • $413 / sq. ft.
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Source: Garden State MLS, Chatham Township, 2026. All four closed sales settled at or within 1.5% of asking, on 0 to 33 days on market.
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Independent valuation. The April 2026 appraisal reconciled to $3,430,000 as completed, supported by three 2025 Chatham sales of $3,600,000 to $4,150,000 after adjustment. The cost approach independently indicated $3,432,000. The appraiser recorded the neighborhood as stable with supply in shortage and marketing time under three months.
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Market Evidence
STABLE TO
IMPROVED
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The 2026 closings sit at or above the appraised value and sold quickly. We are watching the active listing at 336 Fairmount Ave, 7,200 sq. ft. of new construction asking $2,975,000, as the most relevant competing supply. A 2027 exit is a longer horizon than this evidence can carry on its own, and we will revisit pricing closer to listing.
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Projected Profit
Profit moves closely with the eventual sale price, less selling costs. The range below shows the outcome at three price points rather than a single figure.
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| Sale Price Scenario |
Sale Price |
Projected Profit |
| Conservative | $3,200,000 | ~$465,000 |
| Base case | $3,500,000 | ~$750,000 |
| Upside | $3,700,000 | ~$940,000 |
The base case uses our working resale value of $3,500,000, which sits inside the 2026 comparable range and above the April 2026 appraised value. Final profitability will depend on remaining construction costs, timing, carrying costs, selling expenses and the ultimate sale price. These are projections, not guarantees.
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Section 06
Current Challenges and Management Response
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| Rain delaying foundation excavation |
Monitoring |
Impact: Weeks of consecutive rain have slowed the excavator, pushing the foundation back and holding construction spending to $14,107 to date.
Response: Foundation targeted for completion before Thanksgiving so framing can proceed over the winter and interior work can continue in cold weather.
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| Exit timing against loan maturity |
Action Required |
Impact: A listing in May or June 2027 leaves roughly two months between a normal closing and the October 28, 2027 balloon, and the loan documents contain no extension right.
Response: Hold the schedule, and open an extension or refinance conversation with the lender in Q1 2027 while the loan is current and performing.
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| Steep slope approvals |
Resolved |
Impact: The grade on this site required a variance and a full set of municipal approvals before construction could begin.
Response: Complete. The approved design turns the slope into three levels of rear balconies and views the flat lots in Chatham cannot match.
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Risk Assessment
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Foundation work depends on weather and runs against a fixed maturity. Winter framing is required to hold the listing date.
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Roughly two months between an estimated closing and the balloon, with no contractual extension.
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The foundation on this slope is the most demanding phase. The structure is conventional once it is in.
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No overrun reported and the full construction contingency remains intact.
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Four 2026 Chatham closings from $3.25M to $3.85M at or near asking, against an appraised value of $3,430,000.
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Maturity is fixed at October 28, 2027 and advances end September 1, 2027. The loan is current, with an as repaired loan to value of 49.62%.
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What Happens Next
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| Complete foundation excavation | Fall 2026 |
| Pour and complete the foundation | Before Thanksgiving |
| Submit the next construction draw request | Q4 2026 |
| Begin framing | Winter 2026 to 2027 |
| Close in the structure and start interior trades | Winter 2026 to 2027 |
| Open the extension discussion with the lender | Q1 2027 |
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Section 07
Final Investor Message
Where we are. The hardest part of 39 Susan Drive is behind us. A parcel on a steep slope is now approved, permitted and financed, with foundation excavation underway. The loan is current, the full construction contingency is intact, and we hold an as repaired loan to value of 49.62% against an appraised completed value of $3,430,000.
What we are focused on now. Getting the foundation in before Thanksgiving. New Jersey has given us weeks of rain and it has slowed the excavator, which is the honest reason construction spending is still light. Once the foundation is complete we frame through the winter, close the house in, and run interior trades in cold weather, which is what makes a listing in May or June 2027 realistic.
What to expect before the next update. A completed foundation, the next construction draw, and framing underway. We will also begin the extension conversation with our lender in the first quarter of next year, well ahead of the October 2027 maturity, so that timing is managed deliberately rather than under pressure.
39 Susan Drive is an example of why some development projects require patience. A difficult parcel has produced a well financed asset with real spread between cost and value, in a market that has been rewarding new construction. Thank you for your continued patience, trust and partnership.
NNG Capital Fund
Forward looking statements in this update, including projected values, completion dates and profit estimates, are projections based on information currently available and are not guarantees of any outcome. Final results will depend on remaining construction costs, timing, carrying costs, selling expenses and the ultimate sale price. Nothing in this report constitutes an offer to sell or a solicitation of an offer to buy any security. Sources: promissory note, loan agreement and accepted loan terms dated April 28, 2026; Superior Loan Servicing payment history through August 1, 2026; appraisal effective April 6, 2026; construction scope of work; Garden State MLS comparable sales, 2026; project walkthrough recording; architectural renderings.
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39 Susan Drive • Investor Update • Q3 2026
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