Fundrise assembling big office, retail portfolio in LA neighborhood

Firm of small investors owns about two dozen properties on West Jefferson Boulevard

Los Angeles /
Jul.July 09, 2021 10:41 AM
Fundrise CEO Ben Miller (LinkedIn, Fundrise)
Fundrise CEO Ben Miller (LinkedIn, Fundrise)

Backed by mostly small investors, real estate startup Fundrise is developing a sizable portfolio of commercial properties in a section of Los Angeles.

The company has scooped up mostly small low-rise commercial buildings along on West Jefferson Boulevard, overhauling them into small offices and retail shops to complement them, according to Bloomberg News.
The smaller office spaces could appeal to companies looking to downsize post-pandemic and to small firms with no need for large spaces.

Fundrise started buying on the commercial strip in 2017 and now owns around two dozen properties between Crenshaw Boulevard and Potomac Avenue.

Its first tenant was rapper Nas’ music and production company Mass Appeal, which is leasing a 5,000-square-foot converted storage and office building.

Since then it has signed leases with Party Beer Company, Lorcan O’Herlihy Architects, Reparations Club and a handful of other tenants.

The firm’s latest acquisition was a vacant 7,000-square-foot parcel on the corner of Hillcrest Drive. The $3.1 million buy completed Fundrise’s acquisition of the entire block, which is otherwise aging, low-rise commercial buildings.

Fundrise is also working on at least one residential project in the area. The firm last year filed plans for an 81-unit project on nearby Crenshaw Boulevard.

Unlike most private equity firms, Fundrise has low minimum investment requirements — as little as $500 — and targets small investors. As of June, the company had about 150,000 backers.

It’s also attracted attention from institutional firms. In June, Goldman Sachs extended a $300 million credit facility to the firm to finance its $500 million bet on single-family rentals.

[Bloomberg] — Dennis Lynch 





    Related Articles

    arrow_forward_ios
    Douglas Emmett's Jordan Kaplan with 21600 Oxnard Street (Getty, LoopNet)
    Douglas Emmett claims Center for Autism owes $4.7M
    Douglas Emmett claims Center for Autism owes $4.7M
    DTLA office buildings
    LA office leasing slows with deals “falling out of contract”
    LA office leasing slows with deals “falling out of contract”
    Jeff Bezos and Water Garden at 2450 Colorado Avenue (Getty, Google Maps)
    Amazon signs LA’s largest office lease of year
    Amazon signs LA’s largest office lease of year
    From left: 17877 & 17875 Von Karman Ave in Irvine, PGGM CEO Edwin Velzel and MetLife CEO Michel Khalaf (LoopNet, PGGM, MetLife)
    MetLife, PGGM buy Irvine creative office in biggest OC deal of year
    MetLife, PGGM buy Irvine creative office in biggest OC deal of year
    LaTerra Development's Charles Tourtellotte with 4112 Del Rey Avenue (LinkedIn, Loopnet)
    LaTerra buys Marina del Rey office complex
    LaTerra buys Marina del Rey office complex
    FS Investments' Michael Forman and Tishman Speyer's Rob Speyer with 555 South Aviation Boulevard (Tishman Speyer, LoopNet, iStock)
    Tishman Speyer notches priciest LA office sale of year
    Tishman Speyer notches priciest LA office sale of year
    Hacienda Associates' Ernesto Fonseca with 225 West Broadway (Hacienda Associates, LoopNet)
    Value of Glendale office building dips to $217 psf
    Value of Glendale office building dips to $217 psf
    KBS CEO Marc DeLuca and Union Bank Plaza at 445 S Figueroa Street in Los Angeles (Loopnet, LinkedIn)
    Another deal for KBS’ Union Bank Plaza falls through
    Another deal for KBS’ Union Bank Plaza falls through
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...