Real estate platform, Fundrise, announced on Wednesday (October 1st) that it has raised $650,000 from 37 investors in a private offering for 1326 Florida Avenue NE, a contemporary apartment development in the burgeoning H Street Corridor sponsored by Ditto Residential. 1326 Florida Avenue NE is expected to be a four-story building with 45 micro-apartments, 18 bicycle spaces, and 16 parking spaces. Units will range from 312 square feet to 1,000 square feet.
The project is located just two blocks from bustling H Street, which has seen dozens of new dining, arts and entertainment venues open in recent years, along with an influx of new residents and visitors. Construction on the building is scheduled to begin in fall 2014, with occupancy planned for late 2015.
Co-founder and CEO of Fundrise, Ben Miller stated,“We saw tremendous interest from our members around the opportunity to invest in one of the fastest growing neighborhoods in Washington, D.C. 35 percent of the project’s investors are from DC, Maryland or Virginia, and have seen the development taking place in the area first-hand.”
Maketto, a communal food and retail market expected to open this winter, also on H Street, was the first crowdfunding offering completed by Fundrise. The company raised $325,000 from 175 unaccredited investors for that development in 2011. Maketto will include a new restaurant from renowned chef Erik Bruner-Yang of famed DC eatery Toki Underground, a bakery, outdoor vendor stalls, and a retail store selling local brand DURKL.
“It can be very difficult for developers to find lenders willing to invest in properties in newly emerging neighborhoods,” co-founder and President of Fundrise, Dan Miller explained.“Using the Fundrise platform, Ditto Residential was able to connect with a wider audience interested in accessing urban real estate projects.”
The expected maturity date of the 1326 Florida Avenue NE investment is Summer 2016, with a projected gross annual return of 12 percent. The Fundrise preferred equity investment will be paid ahead of the project’s developer or common equity investors.
Founder and president of Ditto Residential, Martin Ditto added, “This is our first time raising capital through Fundrise for one of our buildings, and we look forward to working with them again in the future on other projects in the DC market.”
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