New Class-A Seattle Boutique Apartment

12.0%
gross ann. return*
0 mo.
term remaining
B
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 $2,800,000
Underlying Security Preferred Equity

Investment Summary

This is an opportunity to invest in a brand new Class A 111-unit boutique apartment building, The Søren, located in the heart of Seattle’s Ballard neighborhood. The project, which opened to new move-ins in May 2015, is now over 46% leased as of June 2015. The sponsor, Pryde+Johnson, used the proceeds from the Fundrise investment to cash out a portion of their initial $10 million equity contribution in the project, and plan to use the proceeds in a new multifamily development.

Key Deal Points

Very Low Leverage Basis + Strong Cash Flow

The Fundrise investment represents an LTC of 77.4% on the total project cost of $33.2M, with $7.5M of hard equity junior to the Fundrise position. The investment features an LTV of 57.3% on the sponsor’s as-stabilized value projection of $44,876,505. 

The project would have to under perform by more than 20% before the Fundrise investment would be negatively impacted

Class A Property in Core Market

The Soren is a brand new Class-A property. It's located in the Ballard submarket of Seattle, one of the hottest neighborhoods in one of the top five strongest cities for multifamily investment. Ballard has unmatched "coolness" and cache with a concentration of authentic and boutique retail, walkability, and a great neighborhood setting within relative proximity to Seattle’s urban core. It is an area favored by institutional owners. Equity Residential, Avalon Bay, Amli, and Blackrock all own properties within a few blocks of the subject.

The quality of the project combined with the location create a strong likelihood that the asset performs well in terms of it's ability to lease quickly and meet projected rent expectations.

Personal Guaranty from Strong Local Sponsor

Pryde+Johnson has decades of experience developing in the core Seattle submarkets. The sponsor is beginning construction on a similar 106-unit project (the Keelson Apartments) a few blocks away in June 2015.

The sponsor invested approximately $10 million of their own personal capital into the development of Soren and with the Fundrise investment in place will retain more than $7 million of cash equity in the asset, junior to the Fundrise investment.

Projected Return Calculator

Principal
$5,000
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
B3
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 60-69% 3
Capital Junior to Fundrise 20-29% 3
Location Primary 1
Occupancy Leasing 2
Development Phase Stabilized 1
Sponsor’s Track Record $50-249 million 2
Personal Guaranty Yes -1
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 22.6% $7,500,000
Preferred Equity Fundrise Investment 8.4% $2,800,000
General Contractor Takeout 3.3% $1,100,000
Senior Debt 65.7% $21,800,000
Total 100.0% $33,200,000

Property Summary

The subject property consists of a single eight-story podium-style building. The project contains a total of 111 multifamily units plus 5,320 SF of ground-floor commercial space.

Address 5711 24th Ave NW
City & State Seattle, WA
Neighborhood Ballard
Product Type Residential / Multifamily
Project Phase Stabilized / Recapitalization

Market Summary

Seattle is the largest city in the Pacific Northwest and one of the fastest-growing cities in the United States. The cultural and business center of the region, Seattle and its surrounding areas are the home to Boeing’s aircraft assembly plants, Microsoft, Amazon.com, Costco, Nintendo of America, Starbucks, and the University of Washington, as well as a vibrant arts scene and an excellent park system. Seattle added nearly 50,000 to the MSA in each of the past four years with additional employment gains forecast well into the future driving continued demographic growth.

About the Sponsor

curt pryde

Principal

Pryde+Johnson is a second-generation privately owned developer and builder with more than 25 years of experience in the Seattle market. The Pryde + Johnson’s team has extensive experience in multifamily developments, including over 21 apartment communities and condominium projects.

View full profile

Fee Schedule

Gross ann. return* 12.0%
Servicing and administration fee -0.5%
Net ann. return to investors 11.5%

Other Past Investments

DC Luxury Condo Loft Conversion

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

Atlanta Condo Pre-Development Loan

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