DC Capitol Riverfront Condo Pre-Development

15.0%
gross ann. return*
0 mo.
term remaining
D
Investment Complete
Current Ann. Return 15.0%
Accrued Ann. Return 0.0%
Gross Ann. Return* 15.0%

Investment Details

Current Ann. Return 15.0%
Accrued Ann. Return + 0.0%
Gross Ann. Return* 15.0%
Term Remaining 0 of 12 mo.
Min. Investment $5,000
Investment Size $1,370,000
Underlying Security Preferred Equity

Investment Summary

This is an opportunity to invest in a series of Notes tied to a preferred equity investment in the acquisition and pre-development of a two phase 55-unit condominium development located in DC’s Capitol Riverfront District. Sponsor James Anderson, Manager of 818 Potomac Avenue SE, LLC, closed on the acquisition of the property in March 2015 and is currently in the pre-development process.

Key Deal Points

Favorable supply and demand characteristics

Location is poised to benefit from both the "white-hot" Barracks Row / Capitol Hill submarket and the dramatic growth in the Southwest waterfront, with the vast majority of new units slated to be Class A rental apartments which will enhance, rather than compete with, the proposed product.

Active Local Developer

818 Potomac Avenue SE, LLC is managed by James Anderson, a DC-based developer with Capitol Hill offices only five blocks from the site. James is a founding partner of NOVO Development Corporation, which owns and manages a portfolio valued in excess of $150M, with over 1,800 apartment units in Washington, DC, Chicago, IL, Philadelphia, PA, Charleston, SC and Cambridge, MD.

Projected Return Calculator

Principal
$5,000
Gross Annual Return* 15.0%
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
D1
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 50-59% 2
Capital Junior to Fundrise 10-19% 4
Location Secondary 2
Occupancy Vacant 3
Development Phase Ground-up 3
Sponsor’s Track Record $50-249 million 2
Personal Guaranty Yes -1
Overall 15 D1

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 LPs 14.3% $597,690
Preferred Equity Fundrise Investment 32.8% $1,371,000
Senior Debt 52.9% $2,210,410
Total 100.0% $4,179,100

Property Summary

As-Is – 816 Potomac Avenue SE is an elegant, 4-story, 15,000 SF historic building constructed in 1945 and presently vacant. The yellow brick building sits over 60 feet from the Avenue on a 6,985 SF lot, behind a beautiful, mature maple tree, and is served by a gracious circular drive. The building has a full basement, with large window wells and two exits to the street, in addition to the central stairway, which has a skylight that is the entire size of the stairwell. The flat roof lends itself well to the proposed roof deck.

Address 818 Potomac Ave
City & State Washington, DC
Neighborhood Capitol Waterfront
Product Type Residential / Multi-Family
Project Phase Ground-Up / Pre-Development

Market Summary

Washington, DC, the seat of the Federal government, covers an area of nearly 69 square miles located between Virginia and Maryland at the confluence of the Potomac and Anacostia Rivers 25 miles west of the Chesapeake Bay. Recognized as one of the most beautifully designed and distinguished cities in the world, Washington has witnessed a cultural resurgence in recent years as several historic neighborhoods including the U Street Corridor, 14th Street/Columbia Heights, Barracks Row, and NOMA, have undergone economic revitalization and development. 

About the Sponsor

George Webb

Manager

James Anderson

Managing Principal

818 Potomac Avenue SE, LLC is managed by James Anderson, a DC-based developer with Capitol Hill offices only five blocks from the site. James was a founding partner of NOVO Development Corporation, which owns and manages a portfolio valued in excess of $150M, with over 1,800 apartment units in Washington, DC, Chicago, IL, Philadelphia, PA, Charleston, SC and Cambridge, MD.

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Fee Schedule

Gross ann. return* 15.0%
Servicing and administration fee -0.3%
Net ann. return to investors 14.7%

Other Past Investments

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

Brooklyn 3-Unit Apartment Repositioning - Senior Loan

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B
Gross Ann. Return* 11.0%
Term Remaining 0 mo.
Underlying Security Senior Debt