Palm Springs 14-Unit Luxury Home Development

gross ann. return*
15 mo.
term remaining
Current Ann. Return 0.0%
Accrued Ann. Return 15.0%
Gross Ann. Return* 15.0%

Investment Details

Current Ann. Return 0.0%
Accrued Ann. Return + 15.0%
Gross Ann. Return* 15.0%
Term Remaining 15 of 36 mo.
Min. Investment $5,000
Investment Size $1,500,000
Underlying Security Preferred Equity

Investment Summary

We are excited to offer an opportunity to invest with us in the first phase of a three phase 14-unit luxury home development in the high-end Andreas Hills neighborhood of Palm Springs, California. The developer, Alta Verde Group, is an award-winning industry leader and has completed and sold over 91 homes with a market value of $82 million.

Key Deal Points

Strong Corporate Guaranty

This investment features a strong corporate guaranty from the developer, Alta Verde Group. The senior lender is requiring Alta Verde Group to maintain a minimum liquidity and net worth during the entire term of the investment that is several times greater than the entirety of our $1,500,000 position.

Active Local Developer

Based in Los Angeles, Alta Verde Group is led by a group of award winning industry leaders, including CEO Andrew Adler. His career includes the completion and sales of over 50 projects and over $1 billion in planned residential communities, commercial and mixed-use projects. Alta Verde Group is currently developing 60 homes in the Monte Sereno project, located on an adjacent parcel: (

Low All-In Investment Basis

The developer forecasts sales of $450/SF which equals roughly $2,300,000/home for a total of $32,200,000 for the entire project. On an all-in basis, the investment (including the projected return) plus the senior debt feature a year 3 basis of $253/SF or $1,297,000/home. This is 44% below the developer's sales projections and is also 36% lower than the "as-completed" appraised retail value.

Strengthening Palm Springs Market

As Palm Springs has garnered increasing bi-coastal attention in recent years, the area’s housing market has continued to recover and grow as median housing prices increased 30% in 2013 and 14% in 2014, according to Palm Springs traditionally experiences strong housing demand and real estate growth in correlation with the greater Los Angeles economy.

Projected Return Calculator

Gross Annual Return* 15.0%
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 60-69% 3
Capital Junior to Fundrise 20-29% 3
Location Secondary 2
Occupancy Vacant 3
Development Phase Ground-up 3
Developer’s Track Record $50-249 million 2
Corporate 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 Developer and LPs 21.8% $2,475,000
Preferred Equity Fundrise Investment 13.2% $1,500,000
Senior Debt 65.1% $7,400,000
Total 100.0% $11,375,000

Property Summary

As-completed: The developer plans building 14-luxury homes with gross square footage totaling 71,677. The homes will feature 4 separate designs:

Address 1030 Bogert Trail
City & State Palm Springs, CA
Neighborhood Andreas Hills
Product Type Residential / 14 Luxury Homes
Project Phase Ground-Up / Acquisition & Construction

Market Summary

Two hours east of Los Angeles at the northern end of the Colorado Desert, the Coachella Valley in California is composed of a handful of cities, the most established of which is Palm Springs. Rich in history and blessed with gorgeous weather, Palm Springs is a preferred destination of travelers from all over the world. Nestled at the base of the Mount San Jacinto Mountains, Palm Springs is known for its crystal blue skies, year-round sunshine, stunning landscape, palm tree lined streets and starry nights. Once known as a winter escape for Hollywood’s Rat Pack and other entertainers, Palm Springs and its neighbors are now famous for their 110 golf courses, 24-hour casinos, scenic hiking trails, and mid-century modern architecture, boutiques and art galleries. As Palm Springs has garnered increasing bi-coastal attention in recent years, the area’s housing market has continued to recover and grow as median housing prices increased 30% in 2013 and 14% in 2014, according to 

About the Sponsor

David Kivitz

Managing Director

Alta Verde Group is a residential real estate development company creating architecturally elegant homes set in highly desirable neighborhoods. Our developments provide superior open floor plans with welcoming interiors, classic exteriors, and affordable price points. Alta Verde homes ‘democratize’ high-end architecture, while maintaining a commitment to contemporary living, historic precedent, and green design practices.

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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

DC Luxury Condo Loft Conversion

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

Atlanta Condo Pre-Development Loan

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