DC Dupont Circle 10-Unit Apartment Acquisition

17.0%
gross ann. return*
107 mo.
term remaining
C
Cash Flowing to Investors
Current Ann. Return 4.0%
Accrued Ann. Return 13.0%
Gross Ann. Return* 17.0%

Investment Details

Current Ann. Return 4.0%
Accrued Ann. Return + 13.0%
Gross Ann. Return* 17.0%
Term Remaining 107 of 120 mo.
Min. Investment $5,000
Investment Size $270,000
Underlying Security Preferred Equity

Investment Summary

This is an opportunity to invest in the acquisition of a stabilized 10-unit apartment building located in Washington, DC’s historic Dupont Circle neighborhood. The sponsor, Valor Development, plans to increase the property value by gradually raising rents in accordance with DC Rent Control Laws before paying back the Fundrise investment via sale or refinance by October 2025.

Key Deal Points

Stabilized Apartment Building with Below Market Rents

The 10-unit apartment building is stabilized with 90% occupancy. The in-place rents are more than 20% below market, and are expected to be gradually increased in accordance with DC Rent Control Law over the term of the investment.

Highly Desirable Core Location

The property is located within the historic district of Dupont Circle, within short walking distance of the Metro station and the Central Business District.

Personal Guarantees from Sponsorship

The sponsor’s principals have provided full personal guarantees for the Fundrise Investment.

Projected Return Calculator

Principal
$5,000
Gross Annual Return* 17.0%
Term 120 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
C1
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 70-79% 4
Capital Junior to Fundrise 10-19% 4
Location Primary 1
Occupancy Occupied 1
Development Phase Stabilized 1
Sponsor’s Track Record $50-249 million 2
Personal Guaranty Yes -1
Overall 12 C1

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 16.8% $437,535
Preferred Equity Fundrise Investment 10.4% $270,000
Senior Debt 72.9% $1,900,000
Total 100.0% $2,607,535

Property Summary

The property consists of an individual land parcel located on the east side of 19th Street, Northwest, just east of Connecticut Avenue and north of S Street and south of Swann Street in the Dupont Circle area of Northwest, Washington, DC. The site totals 1,921 square feet. The improvements consist of an attached four-story, plus English basement, walk-up apartment building that was originally constructed in 1885. Gross building area is estimated to contain 6,334 square feet. The building contains the following unit mix:

Address
City & State Dupont Circle
Neighborhood Washington, DC
Product Type Residential / Multifamily
Project Phase Stabilized / Acquisition

Market Summary

Washington, DC, the seat of the Federal government, covers an area of nearly 69 square miles located between Virginia and Maryland at the confluence of the Potomac and Anacostia Rivers 25 miles west of the Chesapeake Bay. Recognized as one of the most beautifully designed and distinguished cities in the world, Washington has witnessed a cultural resurgence in recent years as several historic neighborhoods including the U Street Corridor, 14th Street/Columbia Heights, Barracks Row, and NOMA, have undergone economic revitalization and development.

About the Sponsor

Joe Bous

Principal

Felipe Serpa

Associate

Will Lansing

Principal

Valor Development believes that urban elegance can be realized through collaboration with both the community and the city. We support the entrepreneurial spirit of our team and the many different ways to create inspired real estate projects both in emerging and established markets. To date Valor has been responsible for the development and construction of over 360,000 SF of mixed use residential and retail projects with total value in excess of $170,000,000. Currently, Valor has over 700 residential units in production representing a market capitalization of $300,000,000.

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Fee Schedule

Gross ann. return* 17.0%
Servicing and administration fee -0.5%
Net ann. return to investors 16.5%

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