Fundrise is proving that just about anything can be crowdfunded, including multi-million dollar real estate projects. The DC-based company is working with MRP Realty and Ellis Development Group to crowdfund some of the cost of The Griffith, a redevelopment project at 965 Florida Ave, NW, in DC. Seeking $300k for the mixed-use retail/residential development, Fundrise co-founder Ben Miller (back row, gray v-neck) says crowdfunding allows ordinary citizens to become real estate investors by throwing in $100 at a time. In return, they could see some cash flow from the property's appreciation and rent.
The Griffith is in DC's Shaw neighborhood. Ben, who has a tech and real estate background, launched Fundrise three years ago after seeing a disconnect between the institutional capital partners who invest in commercial real estate and the community surrounding some of those projects. The platform is free to investors but fundraisers pay a subscription fee to use the site. Ben thinks the crowdfunding model in real estate will catch on quickly when developers realize they can turn to the public to fund a portion of their project. (Or when Zach Braff tries to fund another movie through it.) One recent DC development at 906 H St., NE raised $200k from 200 people in 48 hours. It's also been used for projects in Santa Monica and Brooklyn.
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