We're excited to highlight an investment in your Fundrise portfolio: a preferred equity investment in North Orlando Development, a 300-unit multifamily development in Apopka, Florida, just northwest of Orlando. This investment offers an attractive 13%¹ annual gross return, further supporting the Income Real Estate Fund's already-strong yield.

Investment highlights

  • Investment type: Preferred equity
  • Projected return: 13.00%¹ gross annual return
  • Location: Apopka, FL, positioned within the growing Orlando MSA

Investment overview

North Orlando Development is a 300-unit apartment community featuring eleven four-story residential buildings with elevators. The units will include premium flooring, top-tier kitchens with the latest appliances, luxury fixtures, in-unit washers and dryers, and private balconies. Residents will enjoy an impressive array of amenities, including a state-of-the-art clubhouse, fitness center with yoga studio, gaming and TV lounge, business center, entertainment room, indoor pet spa, custom pool, outdoor grilling stations, and lounge areas with fire pits.

Investment strategy and structure

  1. Preferred equity position: The investment is structured as preferred equity, providing priority returns ahead of any common equity and the sponsor.
  2. Strong potential return: The 13%¹ annual gross interest rate delivers a compelling yield.
  3. Experienced sponsor: The sponsor has acquired and developed over 11,000 residential apartment units across 43 communities with an aggregate transaction value of approximately $3.3 billion.

What's next?

We believe we’re at a turning point in the market. As stocks become more volatile, we expect investors to increasingly seek out greater stability, preferring investments that offer the potential to earn positive returns while also protecting against the downside.

While other income-focused products like high-yield savings accounts are likely to see their returns fall alongside lower interest rates, we expect these types of fixed rate investments to continue paying out the same attractive distribution while simultaneously providing greater stability.

As always, Fundrise remains committed to sourcing investments that align with our long-term objectives of delivering strong, stable returns. Our broad and diversified portfolio aims to provide consistent distributions over the long term, regardless of market cycles and economic conditions (and in particular help weather the storm in this new more volatile environment).

If you have any questions, please don't hesitate to reach out to our Investor Relations team at investments@fundrise.com