Contemporary H Street Apartment Development

12.0%
gross ann. return*
0 mo.
term remaining
D
Cash Flowing to Investors
Current Ann. Return 8.0%
Accrued Ann. Return 4.0%
Gross Ann. Return* 12.0%

Investment Details

Current Ann. Return 8.0%
Accrued Ann. Return + 4.0%
Gross Ann. Return* 12.0%
Term Remaining 0 of 24 mo.
Min. Investment $5,000
Investment Size $650,000
Underlying Security Preferred Equity

Investment Summary

This is an opportunity to invest in Notes tied to the performance of Ditto Residential’s new five-story, 45-unit boutique apartment building in Washington, DC. The property is located in the rapidly developing H Street corridor, approximately one mile from Union Station, less than half a mile from the planned new Whole Foods, and on the route of the upcoming DC Streetcar.

The units’ efficient design accommodates a second resident at a price point more typical of a one bedroom, creating a compelling option for cost-conscious renters in a market that is delivering over 1,000 residential units and 35 new restaurants.

Interest payments on the notes will be tied to the distribution schedule under the terms of the preferred equity investment. Years 1 and 2: 8% current interest with 4% accrued interest. All accrued interest will be paid out at maturity.

Key Deal Points

Personal Guarantee

Martin Ditto, President of Ditto Residential, is personally guaranteeing the investment.

Rapidly Growing Neighborhood

The H Street Corridor has seen significant growth within the last several years. The neighborhood includes over 100 retail shops, new restaurants, clubs and coffee houses. Washington, DCâ??s first modern streetcar system is expected to deliver in early 2015 along with a Whole Foods grocery store in 2016.

Innovative Design

DEP, the project architect, and Ditto Residential worked to create efficient apartment units that will effectively utilize the building’s overall square footage to create additional internal bedrooms ("dens"). By designing units that accommodate an additional resident, cost-conscious renters will be able to live in the desirable H-Street location at a lower price than other comparable properties.

By-Right Development

Ditto successfully led the project through a minor zoning adjustment allowing the project to be considered “by right”. Building permits have been submitted to the city and are expected to be received in early September.

Projected Return Calculator

Principal
$5,000
Gross Annual Return* 12.0%
Term 24 mo.
Total Return*

Fundrise Rating

The Fundrise Rating is a letter rating ranging from A to E that provides investors with the ability to easily compare investments across the Fundrise platform. The Fundrise rating measures the relative risk-adjusted return of an investment. Learn more
D2
A
1
2
3
B
1
2
3
C
1
2
3
D
1
2
3
E
1
2
3
Category Assessment Points
Capital Senior to Fundrise 70-79% 4
Capital Junior to Fundrise 20-29% 3
Location Secondary 2
Occupancy Vacant 3
Development Phase Ground-up 3
Sponsor’s Track Record $50-249 million 2
Personal Guaranty Yes -1
Overall 16 D2

The information contained in the Fundrise Rating is for informational purposes only. It is impersonal and not individualized for any specific investor's financial situation and is not investment advice. These ratings are not intended to be, nor should you interpret them to be, a prediction of how a particular investment will actually perform. You should always carefully consider investments in any security and be comfortable with your understanding of the investment. You may also consider consulting investment professionals.

Risk-Adjusted Return

Capital Structure

Type Source % of Total Amount
Equity Sponsor 17.9% $2,468,796
Preferred Equity Fundrise Investment 4.7% $650,000
Senior Debt 77.4% $10,700,000
Total 100.0% $13,818,796

Property Summary

The building will be a five-story, 45-unit rental building located at 1326 Florida Avenue NE. The 37,279 square foot building will contain one level of subsurface parking with space for 16 cars and a rooftop terrace offering residents an outdoor retreat with views of the neighborhood.

Address 1326 Florida Avenue NE
City & State Washington, DC
Neighborhood H Street Corridor
Product Type Residential / Multi-Family
Project Phase Ground-Up / Under Construction

Market Summary

H Street NE is a half-mile commercial district that is home to over 100 retail shops, a vibrant collection of new restaurants, clubs, coffee houses and diverse dining opportunities catering to DC's young professionals and long-term residents. H Street NE is a transforming, new residential and entertainment district in Washington, DC. In the last 5 years, more than 35 new restaurants have opened and more are under construction.

H Street NE is also an integral part of the Great Streets Initiative, an economic development project led by the District of Columbia, to transform up-and-coming corridors into thriving neighborhood commercial districts. Over $65 million in new streetlights, curbs and sidewalks, trees and landscaping have been, and will be, invested in the H Street NE corridor.

The fruits of this investment are being realized today with the planning and construction of more than 1,000 residential units, building renovations, and storefront improvements that are breathing energy and excitement into this neighborhood bordered by Capitol Hill, Stanton Park and Downtown.

Additionally, the H Street corridor will have the first streetcar line in the District's ambitious 37-mile, $1.5 billion streetcar network. The District Department of Transportation estimates that the line will be completed between late 2014 and early 2015.

Once completed, the streetcar line will run from Union Station, a Metro and commuter train hub, along H Street NE to Benning Road and stop before the Anacostia River. The H Street Corridor will benefit from improved public transportation and the unique attraction of having the only streetcar in the city.

About the Sponsor

Martin Ditto

President and CEO

Jamie Weinbaum

Chief Operating Officer

Chris Koelliker

VP Construction

Daniel Roth

Development Manager

Ditto Residential is a residential development company based in Washington, DC. Our core expertise is producing spaces that have an outsized focus on design. Our products elicit a reaction, are memorable, and cause people to rethink the kind of environment in which they choose to live. For us, development is about constant improvement with the goal of positively changing the city’s landscape.

View full profile

Fee Schedule

Gross ann. return* 12.0%
Servicing and administration fee -0.3%
Net ann. return to investors 11.7%

Other Past Investments

DC Luxury Condo Loft Conversion

Washington, DC
D
Gross Ann. Return* 15.0%
Term Remaining 0 mo.
Underlying Security Preferred Equity

Atlanta Condo Pre-Development Loan

Atlanta, GA
B
Gross Ann. Return* 14.0%
Term Remaining 0 mo.
Underlying Security Senior Debt