Fundrise recently announced their entry into the Washington DC real estate market as a crowdfunding intermediary. If deal number three is any indication, there is certainly some interest among the non-accredited crowd even as participation remains limited to investors in Maryland, Virginia and Washington DC.
The development plan for the vacant building in an up-and-coming neighborhood on 7th St NW required $1.5 million in capital. $350,000 of that was available via crowdfunding, and over $225,000 has already been raised from 225 investors.
Development efforts are being spearheaded by WestMill Capital Partners. The principals of WestMill? Ben and Daniel Miller. Sound familiar? They’re also the founders of Fundrise.
At $100 per share, the average investor has scooped up about ten shares valued at $1000 total – hardly commercial real estate barons, but more likely to be average folks that are looking for some exposure to the ever-lucrative world of real estate investing.
The crowd’s principal investment will be tied up for at least five years. Returns are projected at 8% annually. If the sponsor elects not to return the initial investment after year five, that annual return begins climbing to as high as 16%.
Those interested in a piece of the deal should act fast, because at this rate this deal will close very soon.
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