Northern Virginia 100% Occupied Flex Office

gross ann. return*
0 mo.
term remaining
Investment Complete
Current Ann. Return 12.0%
Accrued Ann. Return 0.0%
Gross Ann. Return* 12.0%

Investment Details

Current Ann. Return 12.0%
Accrued Ann. Return + 0.0%
Gross Ann. Return* 12.0%
Term Remaining 0 of 36 mo.
Min. Investment $5,000
Investment Size $1,500,000
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 recapitalization of a 125k SF Class ‘A’ flex office property located in Prince William County, a Northern Virginia suburb of Washington, DC. The sponsor, Buchanan Partners, originally developed the property in 2006 and recently negotiated a purchase of the asset outright from their initial JV equity partner in March 2015.

Key Deal Points

Personal Guaranty from Strong Sponsorship

Buchanan Partners, one of the largest developers in the DC metropolitan area, has personally guaranteed the investment. Since their founding in 1998, they have made over $1 billion in total investments and developed over 5 million square feet of space.

Attractive Basis

Buchanan Partners developed the property in 2006 with co-investment equity partner, who held an 80% equity interest. The equity partner began to wind down all of its real estate investment funds starting in 2014 and as a result was obligated to sell their interest. Buchanan Partners was able to acquire the asset at a favorable basis of a 10.96% cap rate and $153/SF (close to replacement cost).

100% Leased and Cash Flowing

The asset is currently 100% leased and cash flowing. While all leases will be rolling over the next three years, the sponsor's attractive basis in the property will give them the ability to reset rents to market pricing, retaining quality tenants.

Tenant Space Investments

Many tenants have made significant investments to build out and improve their space. The largest tenant, Nikon Metrology, houses their entire R&D and assembly operations for their Laser Radar product at Innovation Business Center I.

Projected Return Calculator

Gross Annual Return* 12.0%
Term 36 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
Category Assessment Points
Capital Senior to Fundrise 70-79% 4
Capital Junior to Fundrise 10-19% 4
Location Secondary 2
Occupancy Occupied 1
Development Phase Stabilized 1
Sponsor’s Track Record $250 million or more 1
Personal Guaranty Yes -1
Overall 12 C1

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 15.6% $3,125,000
Preferred Equity Fundrise Investment 7.5% $1,500,000
Senior Debt 76.9% $15,375,000
Total 100.0% $20,000,000

Property Summary

The subject property consists of three single-story flex/office buildings that total 125,452 square feet, located at 9371 Innovation Drive in Manassas, Virginia. The buildings were constructed in 2006 and are situated on an 11.5 acre site. The clear height of the buildings is 18 feet and the office finishes account for approximately 76.4% of space. Currently, the property is 100% occupied.

Address 9371 Innovation Drive
City & State Manassas, VA
Neighborhood Northern Virginia
Product Type Office / Three buildings
Project Phase Stabilized / Fully Occupied

Market Summary

The property is located within Prince William County, VA, one of the fastest-growing and wealthiest counties in the Washington-Arlington-Alexandria Metropolitan Statistical Area (MSA). Since 2000, the county’s population increased more than 50%, to nearly 426,000. Population growth is expected to continue and grow a further 32% by 2030 according to studies conducted by the Metropolitan Washington Council of Governments. In 2013, the median household income was $95,268, ranking the county 12th among the largest counties in the United States according to the US Census Bureau.  

About the Sponsor

Buchanan Partners is a leading full service real estate development firm operating in the Washington, D.C. region. Since 1998, Buchanan has made nearly $1 Billion in total investments, with over $250 million in equity capital invested with multiple institutional partners.

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Fee Schedule

Gross ann. return* 12.0%
Servicing and administration fee -0.3%
Net ann. return to investors 11.7%

Other Past Investments

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Gross Ann. Return* 15.0%
Term Remaining 0 mo.
Underlying Security Preferred Equity

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