Fundrise Goes North by Northwest

After offering individual investors the opportunity to own a piece of the massive 3 World Trade Center, the real estate crowdfunding and investment platform is setting its sights on the West Coast.

By Liviu Oltean, Associate Editor

After offering individual investors the opportunity to own a piece of the massive 3 World Trade Center, real estate crowdfunding and investment platform Fundrise announced that it has partnered with Pryde+Johnson to provide $2.8 million in funding for The Søren, a Class A boutique apartment complex in Seattle.

The apartment community is located within the popular Ballard neighborhood and was almost halfway leased a month after opening for move-ins. The asset has a market value of $44 million, based on a cap rate of 4.75 percent and a projected NOI of slightly above $2 million.

The sponsor, Pryde+Johnson, used the investment to cash out part of its $10 million equity contribution to the project and will use the proceeds to fund a new multifamily venture.  Crowdfunding investors are expected to receive a gross annual return of 12 percent, paid quarterly over a 36-month term.

“This is our fourth project in Seattle, and we’re continuing to see growing demand from our investors for high-quality multifamily opportunities in the market,” Ben Miller, co-founder & CEO of Fundrise, said in a prepared statement. “With their strong track record of success in building innovative projects in the city, Pryde+Johnson was a natural fit for the Fundrise platform.”