Real Estate Crowdfunding Platform Takes Just 24 Days to Raise Quarter Million for Williamsburg, Brooklyn Apartments.
Fundrise, a real estate crowdfunding platform, announced it has raised $250,000 from 10 investors in 24 days for 136 North 8th Street in Williamsburg, Brooklyn. Investors are reported to receive a projected gross annual return of 10%, to be distributed in 24 months. The Fundrise investment will account for 8% of the project’s capital structure. The crowdfunding offer was for mezzanine debt / preferred. The balance of the funding came from bank debt (56.6%) topped off with common equity (35.4%).
The developer Brooklyn Standard Properties (BSP) purchased the property in October and intends to renovate the four-unit, four-story rental apartment building located near the Bedford Avenue L station. BSP plans to turn the units into four three-bedroom apartments, duplex the first floor with the basement, and loft the fourth floor unit to increase rentable square footage. The raise will also be used to improve fixtures and finishes in the building, and renovate common areas including hallways and entrances.
This is the third offering by Fundrise on behalf of BSP. In 2014, the platform funded $255,000 for a multifamily rehab in Greenpoint, and $325,000 for a multifamily rehab in Prospect Heights for the developer.
Fundrise recently raised $1.4M from 33 Investors for Multi-Family Portfolio in Bushwick, Brooklyn.
Fundrise, founded by brothers Dan and Ben Miller, was the first portal to successfully raise capital online via equity crowdfunding by leveraging lightly used Regulation A.
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