|Current Ann. Return||0.0%|
|Accrued Ann. Return||+
|Gross Ann. Return*|
|Current Ann. Return||0.0%|
|Accrued Ann. Return||+ 14.0%|
|Gross Ann. Return*||14.0%|
|Term Remaining||0 of 15 mo.|
|Underlying Security||Preferred Equity|
This is an opportunity to invest in a series of Notes tied to Q Street Development’s renovation of an iconic 3-bedroom luxury townhome located on the highly sought after 3600 block of Prospect Street in the heart of historic Georgetown in Washington DC.
The property is a one-of-a-kind 3,788 square foot 3-bedroom townhome located on the prime block of Prospect Street in Georgetown neighborhood, with sweeping views of the Potomac River, Key Bridge and city of Rosslyn. This is one of only a dozen homes that offer such a unique and noteworthy view. While the property itself has been well maintained, it is in need of an interior update to compete with the other $4M+ homes in the neighborhood. Similar homes in Georgetown have recently sold for an average price of $1,185/SF. Q Street Development has budgeted approximately $745/SF in total costs, leaving reasonable room for market fluctuations upon sale. The purchase price for the house is $1.96 million. The sponsor intends to sell the home for $3.6 million.
Q Street Development plans to gut and renovate the property and raise the ceilings from their current height of 8ft to a dramatic 12ft. The larger height will allow the rear windows of the house to span floor to ceiling, providing spectacular views from the large outdoor patio. In addition to increasing ceiling height, Q Street Development plans on a full renovation of the interior space, incorporating modern and luxurious finishes.
This opportunity will be tied to a preferred equity investment made by Fundrise in the project. This preferred equity investment will be senior to approximately $235,000 of equity contributed by the sponsor. The investment is projected to produce an annualized 14% accrued return over the anticipated 15 month investment period. All accrued returns will be paid out at the end of the investment term.
Rashid Salem, President of Q Street Development, has provided a personal guaranty to the corresponding Fundrise preferred equity investment.
|Gross Annual Return*||14.0%|
|Capital Senior to Fundrise||70-79%||4|
|Capital Junior to Fundrise||10-19%||4|
|Sponsor’s Track Record||Less than $50 million||3|
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.
|Type||Source||% of Total||Amount|
|Preferred Equity||Fundrise Investment||13.5%||$380,000|
The project consists of an existing 3,700 SF single family home. The existing home has 3 bedrooms and 3.5 baths on 3 finished levels. Q Street development proposes to completely renovate the existing home, raising the ceiling of both the 2nd and 3rd floors from their current height of 8ft to 12 ft. This house will also include over 1,200 SF of outdoor space on 3 levels including a rooftop deck overlooking the city.
|Address||3614 Prospect St. NW|
|City & State||Washington, DC|
|Product Type||Residential / Single Family|
|Project Phase||Value-Add / Rehabilitation|
The Georgetown neighborhood of Washington, DC is one of the most iconic, highly sought after areas of the entire metro area. Homes in this historic neighborhood sold for an average of $927,000 in 2014 thus far. In June of this year, EastBanc Development sold out a seven-unit condominium development for prices between $3.6M and $5.5M within three weeks of the original listing. Demand for this type of product was so strong that each buyer paid all cash on their transaction.
Q Street Development is a developer of high end residential real estate in the DC metro region. Q Street targets A+ locations with the intent of bringing a new aesthetic to the most discerning of buyer that is under serviced in the District when compared to that of other prominent cities in the country. With a strict attention to detail, using premium finishes from around the globe, Q Street has set itself apart from the "stuffy" colonial tradition of our nations capitol. Q Street has helped usher in a new age that has seen DC blossom into one of the prime destinations for families, millennials and empty nesters who find expression in their home.View full profile
|Gross ann. return*||14.0%|
|Servicing and administration fee||-0.3%|
|Net ann. return to investors||13.7%|