Denver Ground-Up Mixed-Use Apartment Development

13.2%
gross ann. return*
0 mo.
term remaining
D
Investment Complete
Current Ann. Return 6.0%
Accrued Ann. Return 7.2%
Gross Ann. Return* 13.2%

Investment Details

Current Ann. Return 6.0%
Accrued Ann. Return + 7.2%
Gross Ann. Return* 13.2%
Term Remaining 0 of 15 mo.
Min. Investment $5,000
Investment Size $1,000,000
Underlying Security Preferred Equity

Investment Summary

This is an opportunity to invest in a series of Project Payment Dependent Notes ("Construction Note") tied to a preferred equity investment in the ground-up new construction of a mixed-use apartment development located in Denver’s fast-growing River North ("RiNo") neighborhood. The sponsor, Littleton Capital Partners, is planning to break ground on a 62 unit mixed-use development in Spring 2015.

Key Deal Points

Denver Macroeconomic Health

Denver is forecast to continue recording higher personal income, stronger retail sales, enhanced residential and commercial construction, and broad-based job growth at higher rates than both the nation and state.

Neighborhood

The neighborhood River North ("RiNo") is beginning to undergo a significant redevelopment stage in which the prevailing use will shift from industrial to mixed-use. The subject is located between the Ballpark and Curtis Park neighborhoods, but is considered to be part of the overall RiNo redevelopment area. RiNo provides not only an affordable, convenient alternative to living downtown, but has sufficient restaurant and nightlife outlets to draw renters to an increasingly trendy part of town.

Public Transit

The property is within four blocks of the 38th and Blake Station (currently under construction), which is the first stop from Union Station on the East Rail Line that will connect downtown Denver to Denver International Airport (DIA). The East Rail Line, including the 38th and Blake Station, is currently under construction and on-schedule to open 1st quarter 2016. The property is also located just one block away from the future 35th and Downing light rail station, part of the planned Central Corridor extension.

This extension will connect the existing Central Rail Line, which currently ends at 30th and Downing, to the East Rail Line at the 38th and Blake Station. With easy access to two major light rail lines, the Project offers superior public transit connectivity to all parts of the Denver Metro area including downtown, the new Union Station, and DIA. In addition to public transit, the RiNo district is also bounded by Denver’s two primary highways - Interstate 25 and Interstate 70, making the Project easily accessible by car.

Projected Return Calculator

Principal
$5,000
Gross Annual Return* 13.2%
Term 15 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 Primary 1
Occupancy Vacant 3
Development Phase Ground-up 3
Sponsor’s Track Record $50-249 million 2
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 and Limited Partner Equity 22.2% $3,058,275
Preferred Equity Fundrise Investment 7.3% $1,000,000
Senior Debt 70.5% $9,700,000
Total 100.0% $13,758,275

Property Summary

As-Is: The site is currently improved with 13,800 SF of existing commercial space and 2 houses. Most or all of the existing structures will be demolished, though the sponsor may leave in place the 13,800 SF masonry and concrete commercial building, from 1917, which may be kept and renovated or demolished with its exterior façade incorporated into the new design.

Address 35th and Larimer Streets
City & State Denver, CO
Neighborhood River North
Product Type Mixed-Use / Multifamily
Project Phase Ground-Up / Pre-Development

Market Summary

Denver benefits from strong in-migration population growth, a highly-educated workforce and cost of living advantages compared to the coasts, factors that will continue to attract companies to the region. The significant infrastructure investment underway in Denver draws attention to the standout economic activity locally, including an airport and mass transit expansion.

About the Sponsor

Tim Schlichting

Principal

Gail Quan

Principal

Littleton Capital Partners is a privately held real estate company that provides development, property management and consulting services across a diversified mix of asset types. The firm and its principals have a reputation for the development and redevelopment of quality infill projects, active property management, strong property performance and the creation of value for our clients, tenants and investors.

View full profile

Fee Schedule

Gross ann. return* 13.2%
Servicing and administration fee -0.3%
Net ann. return to investors 12.9%

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