Real estate crowdfunding site Fundrise has announced they have hit their target to to raise $1 million for a posh waterfront project in the Hamptons. Crowdfunding began several weeks ago to raise the funds as 64 accredited investors came together to finance a 3500 square foot, 5 bedroom home located in West Hampton Dunes with frontage on Moriches Bay. Investors are expecting a gross annual return of 10.5% – paid in full upon sale of the property. Fundrise states that construction is nearing completion now.
The Hamptons region is an exclusive area with many celebrities and affluent financiers owning residences. The proximity to New York City makes the communities on Long Island a highly popular designation during the summer months.
“With limited developable land on the island and its bay front location, this area is highly sought after by luxury home buyers,” stated Ben Miller, co-founder of Fundrise. “The Hamptons market has seen a dramatic increase in demand in recent years, in particular the Westhampton submarket where median home values have risen to $4.2 million in some locations and home sales above $1 million doubled in the last quarter.”
The project is being built by Chatham Development Company, the largest developer on Long Island with over 30 years of experience and more than 1,500 luxury residences constructed.
“Chatham’s decision to partner with Fundrise on 826 Dune Road in the hot Hamptons market is further testament to our ability to successfully crowdfund investment from local as well as national investors,” stated Dan Miller, co-founder of Fundrise.
Fundrise was the first site to bring real estate investing online paving the way for a growing number of real estate crowdfunding platforms. Based in Washington, DC, Fundrise allows lenders to invest as little as $100 in property and has facilitated over 30,000 investors on their platform to date.
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