Fundrise Partners With Georgia Avenue Project For First Residential Offering

• September 30, 2013
• 4 Comments

by Shilpi Paul

3400 Georgia Avenue NW. Courtesy of Google Maps.

Crowdfunding facilitators Fundrise have partnered with the developers behind 3400 Georgia Avenue NW (map), the 100-unit project planned by Redbrick Partners.

Through Fundrise, interested investors can buy shares in the residential development, but they will be notably more expensive than the entry-level shares for Fundrise’s other projects: at $10,000 per share, the crowdsourcing firm hopes to raise $500,000. (The remaining capital for the project is described here.)

Murry’s grocery currently occupies the Georgia Avenue site, which is located a few blocks south of the Georgia Avenue/Petworth Metro station. Redbrick has plans to initiate a planned unit development (PUD) process in 2014, and to begin construction on the project in 2015. Delivery is estimated for 2016.

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This article originally published at http://dc.urbanturf.com/articles/blog/fundrise_partners_with_3400_georgia_ave_developers/7625

4 Comments

1. Zesty said at 8:37 pm on Monday September 30, 2013:
   If only Fundrise was around when Madoff was in business.....but seriously, IMO I don't see this as a good investment for your average person: 1.) You're on the hook if this doesn't pan out....cause obviously nothing could go wrong(sarcasm) 2.) the maturity date is not certain 3.) They can call at any time 4.) From what I see, there is no dividend that is distributed semi-annually. 5.) Capital stack could change from what is forecast....i.e., the more debt that is injected the less protected your are (debt takes comes first) If you have 10k sitting around in a bank account you forgot about; this may be a great opportunity to put it to work....if spending $10k will cut your bank account in half then I don't see this as a good opportunity when comparing risks/rewards....

1. boybert said at 9:23 pm on Monday September 30, 2013:
   Agree with Zesty. ~10% return over three (maybe) years with no dividends or other benefits isn't more compelling than a well-managed set of mutual funds.

1. Pete said at 4:18 pm on Tuesday October 1, 2013:
   Fundrise will never be as efficient or effective as a mutual fund, but their supposed mission is to give the local investor more impact on their neighborhood. So this is not for the average investor, it IS for people who want this development built in their Petworth neighborhood and have the 10k. Also, you are very correct about possible hidden fees, no voice as silent partner, etc. No one is going to get wildly rich off Fundrise (except the Miller's).

1. Rob said at 4:12 pm on Wednesday October 2, 2013:
   Not too sure about the Fundrise opportunity but this is a prime development spot with a lot in the immediate area changing now and in the pipeline. A few blocks to the metro and 2 blocks to all the action on 11th street. I am a little confused with the property being almost square and the rendering is long, I guess that is why it is a 'preliminary' rendering. It appears by the rendering that they are putting some nice design into the building and not just a generic box as seen in many new buildings.