We have acquired a $10.5 million senior construction loan in the Angelino Heights neighborhood of Los Angeles. The 20,148 square foot site was already approved for the development of thirteen small lot homes as part of a prior Fundrise loan. The borrower, DBA, plans to break ground on the construction of these homes shortly.

Why we invested

  • Approved for development: The property is already entitled for the construction of 13 small lot homes.
  • Attractive margin of safety: The total senior loan commitment is equal to roughly 63% of the appraised value of the property as of September 2017.
  • Great location: The property’s desirable location provides unparalleled views of Dodgers stadium and convenient access to Downtown LA, which has recently benefited from significant development.

Neighborhood spotlight: Angelino Heights

The picturesque neighborhood of Angelino Heights, just two miles northwest of Downtown Los Angeles, is known for its historic charm. The neighborhood’s fantastic location and steep hills provide unparalleled views of Downtown LA and the Dodgers stadium.

Meanwhile, as residents have been drawn to the charming neighborhoods near Downtown Los Angeles, these communities have seen significant revitalization, and corresponding growth. Two trendy communities near Angelino Heights, Echo Park and Silver Lake, have both seen an approximate 14 - 19% year-over-year rise in median sales prices, according to a December 2017 Trulia Report.

Price appreciation in nearby neighborhoods points to the area’s growing appeal, and could also render Angelino Heights relatively attractive as a destination for buyers as price points in the nearby neighborhoods become farther out of reach for first-time home buyers.

This Angelino Heights investment is in line with our overall strategy of meeting the growing demand for housing in urban infill locations where new supply is limited. We believe that the housing market dynamics in the Los Angeles area will support robust home price appreciation, and in turn the success of our investment in this project.