1539 7th Street NW
In advance of their next investment offering, a vacant two-story building at 1539 7th Street NW in Shaw, the folks at Fundrise have launched an effort aimed at gauging interest in a property before moving ahead full steam on a crowdfunded investment initiative.
When Fundrise launched in August, it made headlines for allowing DC-area residents to buy $100 shares in a building at 1351 H Street NE and become part owners in the food and fashion market planned for the address. In a few months, Fundrise reached its investment goal of $325,000.
This time around, they are assessing interest first with a so-called “Test the Waters” program.
“Prior to undertaking the extensive financial effort to complete this process, we are ‘testing the waters’ to ensure there is sufficient investment demand of no less than $300,000 to justify both the time and cost incurred,” noted Fundrise on their site.
With Test the Waters, interested investors visit the Fundrise website and indicate both if they are considering investing and what their investment will be. This time around, Fundrise is upping the minimum cost per share and offering more concrete information on the return on investment. As opposed to a $100 buy-in at 1351 H Street NE that yielded a mysterious return, Fundrise is now asking investors to buy shares at a cost of $1,000 to $5,000 a piece, with a projected return on investment of 8 to 12 percent. They predict that investors will make their money back in 3 to 5 years.
The Miller brothers, who founded Fundrise and Popularise, are also touting their developer credentials on this site. WestMill Capital Partners will be acting as the developers of 1539 7th Street NW, and has a page outlining their history and previous projects.
It appears that WestMill Capital Partners will have more control over what the new property becomes, as opposed to 1351 H Street NE, which was shaped by the results of a poll. According to the website, 1539 7th Street NW will be “boutique retail,” with a retail/restaurant or temporary office tenant. WestMill Capital Partners is planning minor renovations.
Fundrise hopes to reach $300,000 before moving forward; so far, investors have indicated that they will invest $97,000.
This article originally published at https://dc.urbanturf.com/articles/blog/fundrises_new_project_crowdsources_interest_before_investment/6554.
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