Crowdfunding the closest residential building to The White House

Ready for more real estate crowdfunding deals, platform updates, and industry news? We’ve got you covered. This week, we’ll be looking at a new deal from CrowdStreet that happens to include the closest residential property to the White House in DC, a huge announcement from real estate crowdfunding platform Modiv, and a big win for Fundrise. Let’s get into it. 

New Crowdfunding Platform Deals

Our first deal is perhaps a sign of a wider shift in the real estate markets or at the very least an indication of some of the current changes happening on the ground. 1425 New York Avenue is a currently vacant, 287,000-SF office property which will soon undergo a repositioning into a Class A+ residential property, just steps from the White House in Washington DC. In fact, upon completion, the property will be the closest residential property to the home of the Commander-in-Chief. 

The deal, listed on CrowdStreet, is sponsored by Foulger-Pratt, a Potomac-Maryland firm that has completed several other projects on the platform. Aside from its attention-grabbing location, the 1425 New York Avenue multifamily project has a targeted investor IRR of 22.6%, a targeted equity multiple of 2.1x, a targeted average cash yield of 7.6%, and a targeted investment period of 4 years. Check it out for yourself on CrowdStreet, here. 

In what might be the exact opposite of a tony multifamily property on Capitol Hill, AcreTrader has an upcoming informational session for the Tehama Olive Ranch, on Tue, Nov 9, 2021 at 11:00 AM – 11:45 AM PST- but don’t worry, if you miss it you can catch a recorded version with the same link. The ranch itself is comprised of 246 acres in Tehama County, California, containing 150 acres of high-density olive orchards planted more than a decade ago in 2010. It also has 60 acres of Chandler Walnuts, as well as 45 acres of land owned by the firm in charge, 15 leased acres, and 36 acres of homes, shops, and other structures. 

The webinar for the project, along with a Q&A session after will be hosted by Michael Iseman, AcreTrader’s Director of Investor Relations and AcreTrader’s Business Development Manager Drew Lipke. Sponsors Adam Englehardt and Tim Tomlinson will also join in on the Q&A. Head over here to get more details on the Tehama Olive Ranch. 

General Crowdfunding Industry News

In another recent win for Fundrise, the firm recently announced a recent Atlanta apartment investment paid back successfully for investors, generating an annualized return of roughly 10.5%. Fundrise initially invested $5 million into the construction of the Vue at Quarter in 2018. The 271-unit apartment property sits on the Upper Westside of Atlanta, Georgia, in a highly desirable, walkable location, and the capital provided by Fundrise was used to help finance the ground up development of the project. Despite several COVID-19 and inclement weather related setbacks construction finished earlier this year generating an annualized return of 10.5% for investors upon the sale of the property. Read more directly from the horse’s mouth at Fundrise, here.

Crowdfunding Platform Updates

We promised you big news about Modiv- and this is about as big as it gets- according to a story published on November 8th at real estate and finance news site, TheRealDeal, the Newport Beach, California based firm is looking to go public- sometime early next year in Q1 2022. The commercial-oriented crowdfunding platform started life as NNN Reit in 2015, later acquiring platform Rich Uncles and eventually changing their name to Modiv. The firm’s current CEO, Aaron Halfacre, joined the company in 2018, and has a long history in the real estate crowdfunding space, previously helming up the RealtyMogul platform. 

Modiv currently owns a mix of retail, office, and industrial properties, totaling 38 individual properties across Nevada, California, Texas, Ohio, and other states, with several big-name tenants including Northrop Grumman and Dollar General. The company plants to use the public offering to generate more interest from retail and institutional investors as well as expand their footprint in the markets in which they currently operate- and beyond. Get the inside scoop on Modiv’s going public plans at The Real Deal, here. 

That wraps it up for this week- but no worries- we’ll be back next week with all of your favorite real estate crowdfunding news, stories, platform updates, new deals, and more. We’ll see you then.