The Company is called Fundrise 1351 H Street LLC.
Each share entitles you to a percentage of the Company. The Company owns:
This offering is only available to residents of the District of Columbia and the Commonwealth of Virginia.
When we first purchased 1351 H Street NE, our goal was to renovate the building and help a local operator open a new business. We started by investing $500,000 of our own money and then began to raise money for the development.
Trying to raise money from Wall Street institutions did not make sense to us because they did not know H Street and were not natural stakeholders in the long-term success of the neighborhood.
We asked ourselves, “Who really knows H Street?” and “Who really cares about what happens there?” The answer: the people who live, work, and spend time there. So why can't they invest with us?
It took us more than a year to make it possible, qualifying the offering with the Securities and Exchange Commission (SEC), and registering the offering with the local securities regulators in Virginia and the District of Columbia.
Now, the local community can invest in real estate on H Street at a level that makes it accessible to everyone. Our goal is to give you the power to build your city. We are starting on H Street NE and hope you will join us.
Ben, Daniel, Kenny, and Brandon
The Fundrise Team
In May of 2012, two well-known local operators, Erik Bruner-Yang of Toki Underground and Will Sharp of DURKL, signed a lease for Maketto, a joint venture with a vision to transform the DC retail experience.
The concept aims to:
Inspired by international markets and global street culture, Maketto will offer:
Erik is Executive Chef and Owner of Toki Underground.
In January of 2011, chef and owner Erik Bruner-Yang opened the acclaimed Toki Underground in Washington, D.C. In just one year of its opening, Toki Underground has been nationally and locally recognized for its creative menu featuring hybrid Taiwanese style ramen, authentic Taiwanese dumplings, and Asian-themed cocktails. As the winner of Eater’s “So Hot Right Now” Award and Washingtonian Magazine’s “Top Newcomer 2011”, Toki Underground continues to receive rave reviews from The Washington Post, Washington City Paper, the Cooking Channel’s “Unique Eats”, and many more.
In the local community Chef Yang and Toki Underground were runner-up for the Hilly Awards’ “Best New Restaurant” and awarded Washingtonian Cheap Eats two years in a row. His consulting restaurant work for Kushi Izakaya and Sushi landed the 5th and K NW eatery on James Beard Award semifinalist list in 2011.
Chef Bruner-Yang, who is also a resident of H Street, plans to expand his H Street footprint and commitment to the neighborhood with a new establishment named Maketto that will transport the Asian night market experience, energy and cuisine to Washington, D.C.
DURKL, Inc. is a Washington, DC based high-end lifestyle and street-wear brand. The homegrown company designs, manufactures and sells contemporary menswear in over 100 specialty boutiques, stretching across the US and as far as Hong Kong, Australia and Europe.
As stewards of this creative culture, DURKL intends to open their flagship retail store on H Street NE, continuing the growth of the neighborhood while evolving the DURKL brand and bringing a new type of retail experience to Washington, DC.
The property as it exists today.
An illustrative rendering after renovation.
The building has been occupied by various commercial businesses since the early 1920s, such as a men’s clothing shop, the Salvation Army, a general merchandise store, a used clothing store/thrift shop, a TV and Radio repair shop, as well as numerous residential tenants.
According to Wikipedia, the H Street NE neighborhood was one of Washington’s earliest and busiest commercial districts and was the location of the first Sears Roebuck store in Washington. H Street went into decline after World War II and businesses in the corridor were severely damaged during the 1968 riots. The street did not start to recover until early in the 21st century.
In 2003, the City of Washington adopted a plan for the revival of the corridor anchored by the Atlas Theater – a 1930s-style movie theater that had stood vacant since the 1968 riots. The refurbished, historic landmark now includes more than 59,000 square feet: four theatres, three dance studios, and production and rehearsal space.
As part of the renovation, the District’s economic development plans embraced the creation of an arts and entertainment zone as a method of social and economic revitalization. The property, 1351 H Street NE, sits in the middle of this arts and entertainment zone.
A live music venue built around a high-end boutique hotel concept. Each hotel room is decorated with a distinct theme and is available for party rentals. The Hotel provides one of the most unique entertainment experiences in DC.
The beautiful restoration of this old theater sparked the revitalization of H Street. When it opened in 2006, the Atlas breathed life into the corridor from 10th to 15th Street, setting the tone for new art and entertainment-focused venues.
Of all the food and nightlife venues on H Street NE, Granville Moore’s is the best-known. Joe Englert and Chef Teddy Folkman’s Belgian themed restaurant helped to define the neighborhood as a food destination.
Opened in March 2011, this 40-seat ramen noodle bar already boasts 2+ hour waits. Chef Erik Bruner-Yang taps into DC’s growing demand for authentic, niche food venues and has quickly established his restaurant as a local favorite.
H Street is the first line in DC’s ambitious streetcar plan. Scheduled to open in 2013, the trolley runs from Union Station to Benning Road NE. The $65 million project improves access to the neighborhood and drives growth.
On July 19, 2012, Steuart Investment Co. broke ground on a six-story, Giant Foods-anchored retail and residential development. The LEED certified building will include 215 apartments and is expected to open in early 2013.
In October 2010, Clark Realty broke ground on the area’s first large residential project on the eastern end of H Street. The Flats will include 5,000 SF of ground floor retail and 257 high-end apartments.
With approximately 400 apartment units planned and 50,000 square feet of retail, this project stretches two blocks from 8th to 10th Streets NE and is the largest redevelopment in the works on the H Street corridor.
The Property is one of the remaining un-renovated parcels along the entertainment strip on the south side of H Street NE, between 13th and 14th Streets. H Street NE is a half-mile commercial district that is home to over 100 retail shops, a vibrant collection of new restaurants, clubs, coffee houses and diverse dining opportunities catering to DC’s young professionals and long-term residents.
H Street NE is a transforming new entertainment district in Washington, DC. In the last 5 years, more than 35 new restaurants have recently opened or are presently under construction.
H Street NE is also an integral part of the Great Streets Initiative, an economic development project led by the District of Columbia to transform up-and-coming corridors into thriving neighborhood commercial districts. Over $65 million in new streetlights, curbs and sidewalks, trees and landscaping have been, and will be, invested in the H Street, NE corridor.
The fruits of this investment are being realized today with the planning and construction of more than 1,000 residential units, building renovations, and storefront improvements that are breathing energy and excitement into this neighborhood bordered by Capitol Hill, Stanton Park and Downtown.
The H Street corridor will be the first streetcar line in the District's ambitious 37-mile, $1.5 billion streetcar network. Despite the political uncertainties surrounding the construction of the entire network, the H Street NE line is already under construction. The District Department of Transportation estimates the line will be completed in 2013.
Once completed, the streetcar line will run from near Union Station, a Metro and commuter train hub, along H Street NE to Benning Road and stop before the Anacostia River. The H Street Corridor will benefit from improved public transportation and the unique attraction of having the only trolley in the city.
Over the course of the 10-year lease, base rent is scheduled to grow from $150,000 per year to $195,000.
The base rent will first be used to pay the interest on the $861,000 loan. The remaining cash flow will pay down the principal of the debt (amortization), accounting and asset management, reserves, and dividend distributions.
|Levered Cash Flow||$94,035||$99,976||$106,147||$112,556||$119,214|
Drivers of the change in value of the real estate include:
Fundrise investors receive exclusive member benefits as financial owners of Fundrise 1351 H Street LLC. Your benefits increase with the amount you invest with Fundrise.
Investors that purchase at least one share receive access to Fundrise Investor benefits, which include:
Investors that purchase at least ten shares receive exclusive access to the Preferred benefits, which include:
Investors that purchase the maximum 100 shares receive exclusive access to Elite benefits, which include: