Charlotte Land Acquisition and Pre-Development Loan

gross ann. return*
0 mo.
term remaining
Cash Flowing to Investors
Current Ann. Return 0.0%
Accrued Ann. Return 16.5%
Gross Ann. Return* 16.5%

Investment Details

Current Ann. Return 0.0%
Accrued Ann. Return + 16.5%
Gross Ann. Return* 16.5%
Term Remaining 0 of 18 mo.
Min. Investment $5,000
Investment Size $1,240,000
Underlying Security Senior Debt

Investment Summary

This is an opportunity to invest in a series of Notes tied to the performance of CitiSculpt’s acquisition and predevelopment of a 60,011 SF site located at 1213 West Morehead Street on the western edge of Charlotte’s Third Ward, roughly 1 mile from the Central Business District (“CBD”). The site improvements currently consist of a vacant one-story 17,045 SF warehouse constructed in 1947. The structure is not considered to contribute any value to the subject site. The sponsor has indicated they will passively look for a storage tenant to temporarily occupy the now-vacant structure to provide extra cash flow.  The temporary tenancy is not viewed as a vital part of the project.

Key Deal Points

Charlotte Macroeconomic Health

Charlotte's above-average long-term outlook is based largely on its appeal as a corporate location. A wide variety of firms are relocating their headquarters and regional offices to Charlotte, enhancing the metro area's talent pool.


The "FreeMoreWest" neighborhood is very well established and just off the uptown employment district. The restaurants in the area range from established and historic to hip, new, and casual. The adjacent single-family neighborhood is stable and historic, sought after by the buying public as an affordable alternative to the more highly appreciated 3rd and 4th Ward. As an urban area, there is a mix of industrial, retail, greenway and major entertainment, all minutes from the prime highway corridors for superior access throughout the area and beyond. The immediate area around the site includes the refurbished Coca Cola Bottling Company building, which is nearly 100% leased to small businesses, as well as one of Charlotte’s oldest restaurants, the Open Kitchen.

Nearby Development

The sponsor has acquired a nearby assemblage of land at 1309 and 1331 W. Morehead Street, which is intended for a 283-unit apartment development.  If the desired Joint Venture agreement can be achieved, the sponsor plans to go ground-up on the development in May 2015 and deliver in late Summer 2016.

Active Local Sponsor

CitiSculpt is a regional real estate development and investment company that specializes in infill redevelopment and the creation of mixed-use properties throughout the Carolinas. Managing Partners, Charles Lindsey McAlpine and Shane Seagle, represent over 45 years of combined experience in the real estate development and construction industries and have completed projects in excess of $700 million in value. Currently, the team is developing over 900 units and 20,000 square feet of office space for multi-use communities and complexes in various cities across the Carolinas. These projects vary widely from traditional suburban style 3 story apartment buildings to complete infill blocks of 10-story buildings of hotels, offices, retail, and residential units.

Favorable Cost Basis

The sponsor is purchasing the land for $25/SF, and the debt will feature a basis of $17/SF. Comparable land sales in Charlotte range from $24/SF to $77/SF.

Projected Return Calculator

Gross Annual Return* 16.5%
Term 18 mo.
Total Return*

Fundrise Rating

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Category Assessment Points
Capital Senior to Fundrise 0% 0
Capital Junior to Fundrise 40% or more 1
Location Secondary 2
Occupancy Vacant 3
Development Phase Ground-up 3
Sponsor’s Track Record $50-249 million 2
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 and LPs 35.9% $695,000
Interest Reserve Fundrise Investment 11.1% $215,000
Senior Debt Fundrise Investment 53.0% $1,025,000
Total 100.0% $1,935,000

Property Summary

The subject is a 1.38-acre (60,011 SF) tract of land located at 1213 West Morehead Street in Charlotte, North Carolina. Ingress and Egress are available via West Morehead Street. The site has one 17,045 square foot warehouse building on-site constructed in 1947 (based on tax records), but is not considered to contribute any value to the subject site.

Address 1213 West Morehead St
City & State Charlotte, NC
Neighborhood FreeMoreWest
Product Type Land Acquisition / Planned Office
Project Phase Ground-Up / Pre-Development

Market Summary

Charlotte's above-average long-term outlook is based to a good extent on its appeal as a corporate location. A wide variety of firms are relocating their headquarters and regional offices to Charlotte, enhancing the metro area's talent pool. Sealed Air Corp., a manufacturer of packaging products and hygiene solutions, will move its global headquarters to Charlotte, bringing more than 1,000 jobs with an average salary of almost $120,000, double the average wage in Mecklenburg County. This will be the largest Fortune 500 corporate headquarters relocation in the Queen City's history. The high-paying positions will have positive effects on consumer-related industries as well as the housing market. Team Créatif Group, a French marketing and design firm, will also set up its U.S. headquarters in Charlotte. In addition, Red Ventures, which already employs about 2,000 at its Charlotte headquarters, will create nearly 600 jobs over the next five years and invest more than $2 million.

About the Sponsor

The primary mission of CitiSculpt is to shape our community and our world by investing in people and places to enhance lives and create exceptional value for our investors. Every project we develop creates new opportunities to change a community for the better.

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Fee Schedule

Gross ann. return* 16.5%
Servicing and administration fee -0.5%
Net ann. return to investors 16.0%

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Gross Ann. Return* 14.0%
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