We’ve invested roughly $5.8 million in a partnership with a local developer to buy a large industrial property located less than two miles north of Capitol Hill in Washington, DC. This is the latest example of our broader strategy to invest in emerging urban neighborhoods that are poised to undergo rapid growth over the next several years.
Business plan
The property is currently fully occupied, with the larger of the two tenants having roughly four years remaining on their lease. Our goal is to earn rental income for the remainder of their lease while we explore redevelopment opportunities and wait for the neighborhood to mature around our investment.
The 1.7-acre site is large enough to accommodate a mid-rise apartment building with basement parking and ample outdoor space. As DC’s population continues to grow, we believe that the redevelopment of this underutilized property has the potential to produce an attractive long-term return.
Why we invested
- Fast-growing neighborhood: Eckington is located less than two miles north of Capitol Hill within easy walking distance of the Rhode Island Avenue Station on the Metro’s Red line. With rising property values across the city, we expect continued growth in emerging neighborhoods over the next several years.
- Cash-flowing with upside potential: The property is fully occupied and income-generating from day one. The 1.7-acre lot is large enough to be redeveloped into a higher density mid-rise building in the future.
- Strong, stable local economy: With over 30% of residents employed by the government, the DC market is uniquely insulated from national economic downturns. In addition to federal workers, demand is driven by private-sector employees that support the government, such as consultants, lobbyists, and lawyers. For more information, please see our DC market analysis.
As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
