LA Koreatown New Condo Development

gross ann. return*
8 mo.
term remaining
Cash Flowing to Investors
Current Ann. Return 6.0%
Accrued Ann. Return 8.5%
Gross Ann. Return* 14.5%

Investment Details

Current Ann. Return 6.0%
Accrued Ann. Return + 8.5%
Gross Ann. Return* 14.5%
Term Remaining 8 of 24 mo.
Min. Investment $5,000
Investment Size $1,200,000
Underlying Security Preferred Equity

Investment Summary

This is an opportunity to invest in the development and construction of a 40-unit brand new residential condominium project located in the Koreatown neighborhood of Los Angeles.

Key Deal Points

Strong Demand for Condos Due to Lack of Supply

Koreatown is Los Angeles's densest neighborhood with residential vacancy under 2%. The area is projected to have 4.5% population growth projected by 2019, which is anticipated to result in continued significant residential demand for new homes and condos and increased sales prices.

Project is Fully Approved and Under Construction

The sponsors purchased the land fully entitled and have already begun initial construction having closed on their primary loan with the bank.

Interest Reserve to Pay Current Return

The sponsor funded a two year interest reserve at closing which will be used to pay the current preferred return during the construction prior to the proceeds from the sale of the units.

Attractive Basis on Investment

In a conservative scenario where the sales prices for units ended up 5-10% below the projections, only 28 of the 40 units would need to sell for the entire Fundrise Investment to be paid back.

Projected Return Calculator

Gross Annual Return* 14.5%
Term 24 mo.
Total Return*

Fundrise Rating

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Category Assessment Points
Capital Senior to Fundrise 70-79% 4
Capital Junior to Fundrise 10-19% 4
Location Primary 1
Occupancy Vacant 3
Development Phase Ground-up 3
Sponsor’s Track Record Less than $50 million 3
Overall 18 E1

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 19.0% $3,042,490
Preferred Equity Fundrise Investment 7.5% $1,200,000
Senior Debt 73.6% $11,800,000
Total 100.0% $16,042,490

Property Summary

The Harvard Residences (the Project) consists of a six-story wood frame structure containing 40 residential condominium units, making up 45,924 SF of living space, two stories of parking (Type I Construction). The Project consists of two and three bedroom units ranging from 1015 SF to 1252 SF with an average unit size of 1161 SF.

Address 1101 S. Harvard Blvd NW
City & State Los Angeles, CA
Neighborhood Koreatown
Product Type Residential / Condominiums
Project Phase Ground-Up / Construction

Market Summary

The Koreatown submarket is an up and coming area just west of the downtown of Los Angeles that has a large amount of restaurants and retail. Koreatown is one of the most popular and hip neighborhoods in Los Angeles. Following the 1992 riots, the neighborhood was burned out and suffered significantly as a result. The neighborhood did not start to turn around until the late 90s when Korean investors started buying property as a way to protect cash investments during the Asian Financial Crisis. Since then, the neighborhood continued to grow. 

About the Sponsor

Gabriel Gold

Managing Member

Partnership Overview

View full profile

Fee Schedule

Gross ann. return* 14.5%
Servicing and administration fee -0.5%
Net ann. return to investors 14.0%

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