DETROIT—The JOBS Act of 2012 opened the door to crowdfunding by relaxing securities regulations, and investors are starting to tackle more prominent projects. Fundrise, for example, one of the leading platforms, has begun a partnership with Larson Realty Group to develop the former site of Detroit's Tiger Stadium in the Corktown neighborhood near the city's reviving CBD. It will be Fundrise's first project in Detroit.
The stadium was demolished in 2009, but the playing field remains. The Economic Development Corp. of Detroit wants the field preserved but just awarded Larson and the Washington, DC-based Fundrise the right to transform the rest of the site into a mixed-use retail and residential project with stores, restaurants, apartments and town homes.
"Our project vision is to transform this storied site into an activated, mixed-use development that builds on the vibrancy and history of Detroit's Corktown neighborhood, while providing economic opportunities for generations to come,” says Eric Larson, president and chief executive officer of the Bloomfield Hills, MI-based Larson.
Fundrise closed a $38 million funding round in June, and company officials say this was the most raised in a first-round by any crowdfunding platform. The company claims to have 36,570 individual investors.
“2014 has been a year of enormous growth for Fundrise,” says Ben Miller, co-founder and chief executive officer of Fundrise. “Winning the right to join Larson Realty Group to redevelop the former Tiger Stadium shows that there is substantial support for giving individuals a chance to participate in real estate, both locally and nationally.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
