We’re pleased to update you on Carmel Villas, a build-for-rent (BFR) community in Denton, TX, which has been under development since April 2021. A significant milestone in its first phase has been reached, with the successful delivery of 77 units out of 230, with further unit deliveries anticipated through to March 15, 2024. As completed units are delivered, we’re in the lease-up phase, renting out the already finished homes to start generating income while the rest of the development continues.
As the development of Carmel Villas continues, we plan to own and operate the community for the foreseeable future. We aim to leverage the anticipated appreciation of the property’s overall underlying value, prompted by the prevailing trends driving the growth of the build-for-rent asset type. The build-for-rent strategy, standing at the intersection of technology, demographics, and affordability, is poised to emerge as a pivotal asset class in the real estate industry, akin to the trajectory of data centers in preceding decades. Fundrise continues to be at the forefront of this evolution, driving and managing developments within the build-for-rent space.
Investor FAQ: How does this project impact your portfolio?
The investment in Carmel Villas is structured as equity, meaning we hold ownership of the property and are entitled to our proportional share of the rental income, as well as any profits realized upon its eventual sale. The rental income generated throughout the duration of our investment is anticipated to contribute to quarterly dividends, while any appreciation in the property value will be reflected in adjustments to the relevant Fund’s NAV per share.
Should you have any further questions or require additional insights, please visit our help center or contact us directly at investments@fundrise.com.
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Additional Information: An investor in the Fundrise Real Estate Interval Fund (the “Flagship Fund”) should consider the investment objectives, risks, and charges and expenses of the Flagship Fund carefully before investing. The Flagship Fund’s prospectus contains this and other information about the Flagship Fund and may be obtained here. Investors should read the prospectus carefully before investing.
