Washington, DC Luxury Home Repositioning

9.0%
gross ann. return*
0 mo.
term remaining
B
Investment Complete
Current Ann. Return 0.0%
Accrued Ann. Return 9.0%
Gross Ann. Return* 9.0%

Investment Details

Current Ann. Return 0.0%
Accrued Ann. Return + 9.0%
Gross Ann. Return* 9.0%
Term Remaining 0 of 12 mo.
Min. Investment $5,000
Investment Size $1,315,000
Underlying Security Senior Debt

Investment Summary

This is an opportunity to invest in a series of Notes ("Notes") tied to a senior secured loan on 5,535 SF luxury single family residence in the exclusive American University Park neighborhood of Northwest, Washington, DC. The Sponsor, SGA Companies, purchased the home in January for $1,200,000 in an off-market transaction and plans to spend $265,000 in minor improvements to renovate the property before putting it back on the market.

Key Deal Points

Highly Desirable Affluent Neighborhood

American University Park is one of the most affluent neighborhoods in Washington, DC with average home sales price of roughly $800k. Within close proximity to the amenities of Tenleytown and a short commute to downtown DC, the area is extremely desirable for home buyers and families looking for the benefits of the suburbs but the convenience of the city.

Low Basis $/SF

The senior loan has an as-is basis of less than $240/SF while average homes in the area have recently sold for 2x or 3x that value.

Property in Excellent Condition

The home itself is in excellent condition with no significant deferred maintenance and existing top end finishes. The first floor commercial office provided turn-off to buyers not interested in handling the required renovation work on their own.

Projected Return Calculator

Principal
$5,000
Gross Annual Return* 9.0%
Term 12 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
B3
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 0% 0
Capital Junior to Fundrise 10-19% 4
Location Primary 1
Occupancy Vacant 3
Development Phase Value-Add 2
Sponsor’s Track Record Less than $50 million 3
Personal Guaranty Yes -1
Secured by the Property Yes -1
Overall 11 B3

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 10.3% $151,620
Senior Debt Fundrise Investment 89.7% $1,315,000
Total 100.0% $1,466,620

Property Summary

The residence consists of one lot and one dwelling on Massachusetts Avenue between Van Ness and Fordham Road. American University is two blocks south from the subject site, and the property sits directly on the border of the American University Park and Spring Valley neighborhoods. The building is 5,535 SF and sits on a 5,138 SF lot.

Address 4725 Massachusetts Avenue NW
City & State Washington, DC
Neighborhood AU Park
Product Type Residential / Single Family Home
Project Phase Value-Add / Reposition

Market Summary

The site is a highly desirable neighborhood with access to Tenleytown amenities (1.1. miles) and a short commute to downtown D.C (4.5 miles). Average household income in the AU Park submarket is $168,225 and the average home sale price is $792,000.

About the Sponsor

Sassan Gharai

President

At SGA Companies, we believe in designing beautiful buildings that will enhance the neighborhoods, historic areas and commercial spaces in which they are located. The SGA team ensures that the product is one that residents, neighbors, architects and the community at large will be proud to be associated with by obtaining input and perspective from all who will be affected by the project.

View full profile

Fee Schedule

Gross ann. return* 9.0%
Servicing and administration fee -0.3%
Net ann. return to investors 8.7%

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