Salt Lake City Ground-Up Multifamily

gross ann. return*
21 mo.
term remaining
Cash Flowing to Investors
Current Ann. Return 14.0%
Accrued Ann. Return 0.0%
Gross Ann. Return* 14.0%

Investment Details

Current Ann. Return 14.0%
Accrued Ann. Return + 0.0%
Gross Ann. Return* 14.0%
Term Remaining 21 of 36 mo.
Min. Investment $5,000
Investment Size $2,500,000
Underlying Security Preferred Equity

Investment Summary

This is an opportunity to invest in the development of a brand new Class-A 158-unit luxury apartment building, the Bonneville, located in the Central City neighborhood of Salt Lake City, Utah. The sponsor, JF Capital, recently delivered two similar multifamily properties, the 122-unit CityScape and the 61-unit Newhouse, in the same neighborhood and successfully exited both through a sale of each property upon stabilization.

Key Deal Points

Strong Underlying Market Fundementals

The greater Salt Lake City metro area is currently one of the strongest performing cities in the country; the US Chamber of Commerce rated Utah as the #3 State in overall economic performance at the end of 2014 and Forbes listed it as the #1 place for business. This growth has largely been driven by companies like Adobe, Twitter, Electronic Arts and Goldman Sachs creating a growing demand for a highly-skilled and technical work-force, which in turn has resulted in steady demand for new housing.

Active Local Sponsor

The Principals of JF Capital have collectively developed, constructed and acquired over $700 million of real estate assets since 2007, including residential, multi- family and seniors housing. JF Capital’s multi-family division has most recently developed three luxury apartment projects in the greater Salt Lake City metro area, representing nearly 600 units, and also has seven active apartment projects, representing nearly 900 units, in its current development pipeline.

Attractive Investment Basis

The sponsor forecasts as-stabilized NOI in excess of $2M. Assuming a 6.0% exit cap rate and 80% LTV permanent loan, refinance proceeds yield a 1.30x takeout cover for the senior debt and Fundrise investment. In a downside scenario, sale proceeds yield a 1.62x takeout cover under sponsor projections. In other words, based on conservative assumptions the property would have to perform more than 20% below projections before the Fundrise investment was negatively impacted.

Projected Return Calculator

Gross Annual Return* 14.0%
Term 36 mo.
Total Return*

Fundrise Rating

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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
Sponsor’s Track Record $50-249 million 2
Completion 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 Sponsor 21.5% $5,988,000
Preferred Equity Fundrise Investment 9.0% $2,500,000
Senior Debt 69.5% $19,300,000
Total 100.0% $27,788,000

Property Summary

The site is currently improved with a vacant 50-year-old, 29,537 SF one-story building that is to be razed to make way for the 158-unit Bonneville apartment building. The building will be six stories above grade, with an additional level below grade. 

Address 252 South 500 East
City & State Salt Lake City, UT
Neighborhood Central City
Product Type Residential / Multifamily
Project Phase Ground Up / Construction

Market Summary

Garnering recognition as the crossroads of the West due to its central geography in the Western United States, the Salt Lake City metropolitan area is the political and economic center of Utah. With a current population of more than 1.1 million residents, the Salt Lake City metro area has gained national media attention as an economic hotspot given its productive workforce, dynamic economy, exceptional recreational opportunities and overall quality of life. 

About the Sponsor

Alan Lewis


Colin Wright


Adam Paul


Owen Fisher


JF Capital is a boutique real estate investment management firm dedicated to delivering superior, risk-adjusted returns to its clients and investors. JF Capital’s success is demonstrated by the $700 million of acquisitions and developments it has funded to date.

View full profile

Fee Schedule

Gross ann. return* 14.0%
Servicing and administration fee -0.5%
Net ann. return to investors 13.5%

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