|Current Ann. Return||0.0%|
|Accrued Ann. Return||+
|Gross Ann. Return*|
|Current Ann. Return||0.0%|
|Accrued Ann. Return||+ 9.0%|
|Gross Ann. Return*||9.0%|
|Term Remaining||0 of 12 mo.|
|Underlying Security||Senior Debt|
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.
The property located at 4725 Massachusetts Ave NW, was originally listed for sale in June of 2014 for $1,800,000. The four story and roughly 5,535 SF home was previously home to a doctor who used the first floor as a commercial office, reducing its appeal to the average buyer. SGA plans to convert the office into additional living space maximizing the potential value of the property.
Once completed, SGA is projecting a sale price for the home of approximately $1,900,000 or roughly $350/SF, which represents an average discount to market of 35% based on recent homes sales ranging from $413/SF to $670/SF in the immediate vicinity.
The senior loan is $1,315,000 in total which represents a 90% LTC based on a total project cost of $1,466,620. The loan will be senior to $151,620 of equity provided by the sponsor and be secured by the property.
The loan carries a rate of 9% annually which will accrue over the 12 month term of the investment and be paid out at maturity.
The sponsor intends to complete the renovation and sell the property within four to six months from the initial investment date.
Investors in this series of notes will receive a Form-1099.
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.
|Gross Annual Return*||9.0%|
|Capital Senior to Fundrise||0%||0|
|Capital Junior to Fundrise||10-19%||4|
|Sponsor’s Track Record||Less than $50 million||3|
|Secured by the Property||Yes||-1|
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|
|Senior Debt||Fundrise Investment||89.7%||$1,315,000|
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|
|Product Type||Residential / Single Family Home|
|Project Phase||Value-Add / Reposition|
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.
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
|Gross ann. return*||9.0%|
|Servicing and administration fee||-0.3%|
|Net ann. return to investors||8.7%|