Starbucks Anchored Retail Development Tempe, AZ

11.0%
gross ann. return*
0 mo.
term remaining
B
Investment Complete
Current Ann. Return 6.0%
Accrued Ann. Return 5.0%
Gross Ann. Return* 11.0%

Investment Details

Current Ann. Return 6.0%
Accrued Ann. Return + 5.0%
Gross Ann. Return* 11.0%
Term Remaining 0 of 24 mo.
Min. Investment $5,000
Investment Size $3,100,000
Underlying Security Senior Debt

Investment Summary

This is an opportunity to invest in the construction and development of a roughly 10,000 square foot brand new Starbucks-anchored retail center located in Tempe, Arizona. The sponsor, Birtcher Anderson Realty, purchased the land in October 2007 and recently moved forward with plans to develop a retail strip center on the site.

Key Deal Points

Starbucks Anchored & 30% Pre-Leased

The sponsor has a signed a 10-year lease with Starbucks who will anchor the property along with Jersey Mike's. They are also in negotiations with several national credit tenants for the remaining 70% percent of the space. Starbucks is a publicly traded company with an A- credit rating, a $75 Billion market cap, and more than 22,000 stores located in 66 countries.

Project Under Construction w/Completion in 60-90 Days

The project is currently under construction and is approximately 50% complete. The sponsor has invested roughly $1.2M to date and expects to finish construction within the next 60-90 days.

Senior Loan at 75% LTC

The Fundrise Investment is a senior loan at 75% of the total project cost and secured by the property. The Investment is anticipated to be drawn down by the sponsor in five separate disbursements over the course of the construction period.

Projected Return Calculator

Principal
$5,000
Gross Annual Return* 11.0%
Term 24 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
B2
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 0% 0
Capital Junior to Fundrise 20-29% 3
Location Secondary 2
Occupancy Leasing 2
Development Phase Ground-up 3
Sponsor’s Track Record $250 million or more 1
Personal Guaranty Yes -1
Overall 10 B2

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 25.0% $1,034,500
Senior Debt Fundrise Investment 75.0% $3,103,379
Total 100.0% $4,137,879

Property Summary

Asset Overview - The property will consist of two (2) single story buildings totaling 10,663 SF upon completion. The retail space is subdivided into six (6) suites ranging in size from 950 SF to 2,280 SF. The property will have ample parking of 122 spaces, a parking ratio of 11.44 spaces per 1,000 SF of gross building area. 

Address 55th Street & Broadway Road
City & State Tempe, AZ
Neighborhood Phoenix Suburb
Product Type Retail / Retail & Restaurant
Project Phase Ground-Up / Pre-Leasing

Market Summary

The property is located in a suburban area of Tempe, located just 9 miles east of Phoenix. Within one mile of the property there are approximately 1,000 multi-family units completed or under construction and around 1,200 hotel rooms. Almost 43,000 cars travel on Broadway Road per day. The University of Phoenix's main campus is only 1/2 a mile of the property. Arizona State University is located approximately 3 miles from the subject site.  Additionally, Fountainhead Corporate Center, a 470,000 SF+ office park, is located less than 1/2 mile from the subject site.

About the Sponsor

Arthur Birtcher

Principal

Robert Anderson

Principal

James Petrilli

Project Finance

Lisa Durham

Accounting

Since its inception in 1939, the Birtcher organization has grown from a local home building contractor to national prominence as a leading real estate firm in the Western United States. The company has managed over 22 million square feet of commercial property for both their own investment and for various private and public investment entities over the past 40 years, in the United States and in Asia. Additionally, the Birtcher organization has engaged in asset management and repositioning assignments for major financial institutions, including the U.S. Government, as well as constructed or developed over 100 million square feet of commercial property nationally.

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Fee Schedule

Gross ann. return* 11.0%
Servicing and administration fee -0.5%
Net ann. return to investors 10.5%

Other Past Investments

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

Atlanta Condo Pre-Development Loan

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