Fundrise Goes North by Northwest
- Aug 20, 2015
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.”