Brooklyn 3-Unit Apartment Repositioning - Senior Loan

gross ann. return*
0 mo.
term remaining
Investment Complete
Current Ann. Return 11.0%
Accrued Ann. Return 0.0%
Gross Ann. Return* 11.0%

Investment Details

Current Ann. Return 11.0%
Accrued Ann. Return + 0.0%
Gross Ann. Return* 11.0%
Term Remaining 0 of 18 mo.
Min. Investment $5,000
Investment Size $2,000,000
Underlying Security Senior Debt

Investment Summary

This is an opportunity to invest in the repositioning of a 3-unit apartment building in the Park Slope neighborhood of Brooklyn, New York. The sponsor, JBS Project Management, purchased the three story townhouse completely vacant and plans to renovate the property converting the existing structure into 3 separate luxury apartment units. The sponsor has completed several similar renovations in the area, including another townhouse renovation only a few blocks away, which has been fully renovated and is currently leasing.

Key Deal Points

Attractive Basis

Fundrise’s last dollar basis is at $572/SF when market pricing for this type of property is at the lower end of comparables $800/SF, the average being closer to $925/SF, leaving the Fundrise investment a sizable amount of room for market price fluctuation. Additionally, the Fundrise investment is lowly levered at 62% of project cost.

Substantial Sponsor Equity

The sponsor, JBS Project Management, funded over $1.2M of cash equity, more than 38% of the project’s capital, which is junior to the Fundrise position at closing.

Interest Reserve to Pay Current Return

An interest reserve of $200,000 is being held by Fundrise to pay the quarterly return to investors during the construction and lease-up period.

Attractive Location

Park Slope is one of the most attractive neighborhoods in Brooklyn and will continue to see strong demand for housing. The subject property is located 1/2 mile away from a recently delivered Whole Foods grocery store and other various local and national retail stores. Additionally, the property is located approximately three blocks from the F, G, and R trains.

Projected Return Calculator

Gross Annual Return* 11.0%
Term 18 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
Category Assessment Points
Capital Senior to Fundrise 0% 0
Capital Junior to Fundrise 30-39% 2
Location Primary 1
Occupancy Vacant 3
Development Phase Value-Add 2
Sponsor’s Track Record Less than $50 million 3
Secured by the Property 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 and LPs 38.0% $1,225,293
Senior Debt Fundrise Investment 62.0% $2,000,000
Total 100.0% $3,225,293

Property Summary

Property: The subject property is a three-story, low-rise townhouse located on the South side of 7th Street between 4th and 5th Avenues in Park Slope, Brooklyn. The three-unit townhouse currently features three floor-through apartments totaling 3,494 square feet of rentable space. 

Address 306 7th Street
City & State Brooklyn, NY
Neighborhood Park Slope
Product Type Residential / Multifamily
Project Phase Value-Add / Reposition

Market Summary

As the largest borough in New York City, Brooklyn's economy is growing rapidly, fostered by thriving tourism and robust job growth. According to a 2014 study conducted by the State of New York, between 2003 and 2012 the number of businesses in Brooklyn grew by 21%. Additionally, private sector employment grew by nearly 20%, almost twice that of the greater City of New York.

About the Sponsor

Ben Igoe


JBS Project Management was formed out of a need in the marketplace for high quality, boutique project managers for select clients in and around New York City. JBS brings project management experience and skilled consultants to the table to provide the client with considerable expertise over a wide array of construction and development backgrounds.

View full profile

Fee Schedule

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

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