In June 2019, we invested roughly $8.6 million in the acquisition and renovation of Runaway Bay apartments, along with roughly $1 million in equity investment by TruAmerica, our partner on the project, and $18.9 million in financing. The garden-style apartment community is located in Pinellas Park, Florida, a suburb of Tampa, and consists of 192 units with community amenities. Shortly after acquiring the property, we kicked off our value-add plan, which included interior renovations on the apartments, as well as improvements to the property’s clubhouse, fitness center, and landscaping.

Despite pandemic-related delays, steady progress has been made with renovations, with only 77 units left to be renovated over the next four years. Rent collections, a key indicator of apartment property health, have remained consistently strong, with an occupancy rate consistently exceeding 90% since the acquisition.

Today, we’re pleased to share that with strong rent collections and the implementation of our value-add plan, the property value has increased significantly, to approximately $44.3 million according to a recent appraisal, representing a 76.1% increase from the original property purchase price of $25.1 million. To capitalize on this increased value, we’ve secured a supplemental loan of approximately $8.2 million, and the fund received a cash distribution, which it now has the ability to redeploy, either in this project or elsewhere.

Like our other apartment communities in Sunbelt cities, we view the performance of Runaway Bay apartments, both generally and through the pandemic, as a reinforcement of our conviction that affordable real estate in growing areas is always in demand.

Investor FAQ: How does this project impact your portfolio?

This investment is structured as equity, which means we are the owners of the property and entitled to our share of rental income, plus any future increase in the value of the property. As an investor, you can expect to see this impact your return in two ways. Any additional rental income would contribute to quarterly dividends, while any increase in the property value would be captured in adjustments to the Growth eREIT II’s net asset value (NAV) per share.

As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.