|Current Ann. Return||0.0%|
|Accrued Ann. Return||+
|Gross Ann. Return*|
|Current Ann. Return||0.0%|
|Accrued Ann. Return||+ 18.0%|
|Gross Ann. Return*||18.0%|
|Term Remaining||1 of 18 mo.|
|Underlying Security||Preferred Equity|
We are excited to offer the opportunity to invest in a portfolio consisting of two luxury townhome renovations located in the heart of the Logan/Dupont Circle neighborhood of Washington, DC. The Sponsor, CAS Riegler, closed on the properties with us in April 2015 and plans to complete the renovations and market the new units for sale within the next 12 months.
The Logan/Dupont Circle area is now DC's hottest neighborhood and has continued to record substantial year-over-year growth in home sales prices due to the overwhelming demand from both young first-time buyers and empty nesters alike. Proximity to downtown and public transit along with a collection of trendy restaurants, bars, and art galleries have made it the most desirable location in the city for those looking for the new walkable urban lifestyle.
1) 1721 P St. NW
Conversion of an existing historic townhome into 4 luxury condo units. The property is in excellent condition and should require only minimal cosmetic repairs and minor upgrades.
- Total budgeted all-in costs: $4,393,775
- Projected Gross Sales Revenue: $6,008,700
2) 1600 15th St. NW
Renovation of existing property into luxury single-family townhome. The property is located on the highly desirable corner of 15th and Q Streets NW where there is a limited supply of single-family townhomes due to the large volume of condo conversions.
- Total budgeted all-in project costs: $1,973,725
- Projected Gross Sales Revenue: $2,500,000
Analysis: Our stressed sales projections show that the total revenue from the sales of all units would need to be off by approximately 30% before the principal of the Fundrise investment would be negatively impacted.
The assets are located in the heart of the Logan/Dupont Circle neighborhood which has become the most highly sought after and fastest growing luxury home sale market.
CAS Riegler has executed 20+ projects in the DC market totaling nearly $250 million in value creation and has built a pipeline of over $150 million of urban-infill residential and mixed-use properties.
The sponsor’s principals provided full personal guarantees for the Fundrise investment.
|Gross Annual Return*||18.0%|
|Capital Senior to Fundrise||70-79%||4|
|Capital Junior to Fundrise||10-19%||4|
|Sponsor’s Track Record||$50-249 million||2|
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|
|Equity||Sponsor and LPs||4.6%||$294,178|
|Preferred Equity||Fundrise Investment||15.2%||$965,000|
1721 P St. NW - The property is a 4-unit rowhouse rental apartment building, and will be renovated and sold as 4 condo units.
The property will be gutted and finished with high-end materials, including insulated windows, wide plank hardwood floors throughout, custom kitchen appliances, custom kitchen cabinets, custom cabinets in the bathroom, and recessed lighting.
1600 15th St. NW
The property is a 3,271 SF two-unit dwelling with 3 bedrooms and 2.5 bathrooms. Included in this figure is a self-contained 1,072 SF income-unit in the basement, with an additional 2 bedrooms and 2 bathrooms. Access to this lower level unit is from the outside only, and is a common feature for properties in the area.
The property will be gutted and finished with high-end materials, including insulated windows, wide plank hardwood floors throughout, marble kitchen countertops, custom kitchen appliances, custom kitchen cabinets, custom cabinets in the bathroom, marble floors and wainscot in bathroom, and recessed lighting.
|Address||1721 P St. NW & 1600 15th St. NW|
|City & State||Washington, DC|
|Neighborhood||Dupont and Logan Circle|
|Product Type||Residential / Luxury Townhome & Condos|
|Project Phase||Value-Add / Renovation|
Washington, DC - 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.
Logan and Dupont Circle
The properties are located between Dupont Circle and Logan Circle. Dupont circle is one of the most established neighborhoods in DC, providing immediate access to downtown’s K Street Office corridor and Embassy Row. Logan Circle is now DC’s fastest growing neighborhood, and has also become the most densely populated. Both neighborhoods boast a trendy collection of nightclubs, bars, cafes, art galleries, and shops.
The properties’ immediate neighborhood is located approximately 1.5-2 miles north of downtown. This area primarily consists of single-family row houses of above average quality. Other uses include 2-4 family buildings, commercial uses, schools, parks, and apartments. A metro rail station is within walking distance. Shopping and schools are within 1 mile. The trend in this area is for the renovation of old row houses.
CAS Riegler Companies is a vertically integrated real estate development, construction and investment company based in Washington, D.C. The strategic focus revolves around creating value and reducing risk for investors and clients through extensive market knowledge, thoughtful design and a long-term approach to sustainable assets. Since CASR’s inception in late 2009, they have executed 13 projects totaling over $140 million in value creation in its first 4 years and has a pipeline of over $60MM of urban residential projects, all in urban-infill locations. Its principals have a collective 35 years of experience and have executed over $500 million of development and construction in Washington, D.C.View full profile
|Gross ann. return*||18.0%|
|Servicing and administration fee||-0.5%|
|Net ann. return to investors||17.5%|