We’re pleased to announce a new addition to your Fundrise portfolio: a preferred equity investment in a 232-unit multifamily community in Panama City, Florida.

Investment overview

  • Investment type: Preferred equity
  • Annual gross interest rate: 13.00%¹
  • Location: Panama City Beach, FL
  • Asset type: 232-unit stabilized multifamily community
  • Investment term: 5 years
  • Funds: Income Real Estate Fund and Opportunistic Credit Fund II

The preferred equity sits junior to Freddie Mac's senior debt on the property. The presence of agency financing from Freddie Mac on the senior position is a meaningful signal: agency lenders apply rigorous underwriting standards before agreeing to finance a property, providing an additional layer of due diligence on the asset's quality and cash flow stability.

The reason agency financing is available here is that, unlike many of our recent preferred equity investments which have financed ground-up development, this deal is a recapitalization of a stabilized, income-producing property. The property is already built, already leased, and already generating rental income. For investors, the key advantage is straightforward: we're backing an asset with an established operating history, not a set of projections.

Built in 2022, the community consists of four-story residential buildings featuring a mix of studio, one-bedroom, and two-bedroom units. The property offers modern finishes, in-unit washers and dryers, private balconies or patios, and walk-in closets. Community amenities include an outdoor pool, fitness center, dog park, gated entry, package lockers, BBQ grills, outdoor dining areas, and a business center.

Local market insights from RealAI

The property is located in the Upper Grand Lagoon submarket of the Panama City MSA. The Panama City–Panama City Beach metro area ranked second nationally for percentage population growth from mid-2023 to mid-2024, with 3.8% growth according to U.S. Census data. RealAI reports that Upper Grand Lagoon specifically attracts an affluent, highly educated resident base, with median household income of approximately $175,000 (53% above the broader market) and 77% of residents holding a bachelor’s degree or higher.

The local economy is more diversified than the area’s coastal reputation might suggest. Tyndall Air Force Base and Naval Support Activity Panama City account for an estimated 37% of Northwest Florida’s economy, providing stable, high-wage employment largely insulated from seasonal fluctuations. Beyond the military presence, several major investments are underway, including a 300-bed teaching hospital, a $107 million aviation manufacturing facility, and over $200 million in infrastructure improvements, all of which are broadening the area’s employment base.

On the multifamily side, Upper Grand Lagoon occupancy has moderated from 97.6% to approximately 94% over the past year as newer deliveries have been absorbed. RealAI notes that the market has stabilized around 94–95% in Q1 2026, and in-place rent growth of 2.8% year-over-year remains positive. The broader picture is a market digesting new supply while retaining strong underlying demand.

Why this matters

Not all private credit is the same. At Fundrise, we lend almost exclusively against real assets — physical, income-producing properties in strong markets with real equity behind our position.

This investment is a good example of that approach. We're backing a stabilized apartment community with established cash flows in one of the nation's fastest-growing metros. If the borrower were to fail to perform, we would have recourse to a tangible asset with established cash flows, not a set of revenue projections. It's a distinction that matters. For a deeper look at how our approach differs from other corners of the private credit market, read our update, Private Credit: What You Should Know.

The 13.00%¹ gross return contributes to the Income Real Estate Fund's current 8%² annualized distribution rate and the Opportunistic Credit Fund II’s 11%3 annualized distribution rate. As always, we remain committed to sourcing investments that aim to deliver strong, stable returns through disciplined underwriting and a focus on real assets in compelling markets.

If you have any questions, feel free to reach out to our Investor Relations team at investments@fundrise.com.

1. This solely represents a fixed rate of preferred return due to the Fundrise Income Real Estate Fund and Opportunistic Credit Fund II under the terms of their investment agreement(s), and does not reflect either a gross or net return that an investor may expect to receive as a result of this fixed rate return. Due to the uncertainty of other factors that will ultimately determine the return to any investor (such as leverage, cash drag, and other potential financings), the performance of this asset to the investor is currently unknowable and undeterminable, and may ultimately be lower or higher than the stated fixed rate of preferred return. However, please note that all investors in the Opportunistic Credit Fund II will be subject to a 1.75% fund management fee, and, if the Opportunistic Credit Fund II is able to achieve a greater than 10% overall return on its portfolio, which is also uncertain and undeterminable at this time, then the asset will also be subject to an additional 20% performance-based fee for those Opportunistic Credit Fund II investors.

2. As of April 2026. The Income Real Estate Fund's current month’s distribution is annualized and divided by the prior month’s net asset value per share.

3. As of April 2026. The Opportunistic Credit Fund II’s current month’s distribution is annualized and divided by the prior month’s net asset value per share.

Disclosure: An investor in the Fundrise Income Real Estate Fund should consider the investment objectives, risks, charges, and expenses carefully before investing. The Fund's prospectus contains this and other information and may be obtained here. Investors should read the prospectus carefully before investing.