|Current Ann. Return||4.0%|
|Accrued Ann. Return||+
|Gross Ann. Return*|
|Current Ann. Return||4.0%|
|Accrued Ann. Return||+ 13.0%|
|Gross Ann. Return*||17.0%|
|Term Remaining||109 of 120 mo.|
|Underlying Security||Preferred Equity|
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.
Milestones & Exit Strategy: The sponsor purchased the property for $2,150,000 with a 10-year loan from Old Line Bank. The current in place rents for the existing tenants are more than 20% below market, the sponsor plans to gradually increase rents in accordance with DC Rent Control Laws over the next 10 years. The bank has held back a $250K capital expenditure reserve, which will be used for future property improvements that will help achieve higher projected rents. The sponsor plans to pay back the Fundrise investment either through a sale or refinance of the property before October 2025.
Neighborhood: The property is well-located in DC’s historic Dupont Circle neighborhood, within a few blocks walk of the Metro station and close to both the central business district as well as nearby restaurants and other amenities.
Investors are projected to earn a gross annual return of 17.0% over the term of the investment.
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.
|Gross Annual Return*||17.0%|
|Capital Senior to Fundrise||70-79%||4|
|Capital Junior to Fundrise||10-19%||4|
|Sponsor’s Track Record||$50-249 million||2|
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.
|Type||Source||% of Total||Amount|
|Equity||Sponsor and LPs||16.8%||$437,535|
|Preferred Equity||Fundrise Investment||10.4%||$270,000|
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:
|City & State||Dupont Circle|
|Product Type||Residential / Multifamily|
|Project Phase||Stabilized / Acquisition|
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.
DC’s established Dupont Circle neighborhood features some of Washington’s best museums, historic homes and foreign embassies, as well as an eclectic mix of ethnic restaurants, boutiques, bookstores, private art galleries, and nightlife options. Residential streets are lined with high-rise apartment buildings and rowhouses, many of which have been converted to apartments. In the circle, it isn’t uncommon to see impromptu yoga or pick-up games of chess. A redline metro stop provides residents with easy access to the rest of Washington. K Street and the Central Business District are also a short walk away.
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.View full profile
|Gross ann. return*||17.0%|
|Servicing and administration fee||-0.5%|
|Net ann. return to investors||16.5%|