We're excited to announce a new addition to your Fundrise portfolio: a preferred equity investment in Ocean Village, a 314-unit multifamily development in Palm Coast, Florida, within the growing Daytona Beach MSA. This investment offers a 13.00%¹ annual gross return, continuing to reinforce the Income Real Estate Fund's track record of delivering stable, attractive income-oriented returns—even as broader markets remain uncertain.

Investment highlights

  • Investment type: Preferred equity
  • Projected Return: 13.00%¹ gross annual return
  • Location: Palm Coast, FL, within the Daytona Beach MSA
  • Investment horizon: 4-year term, with optional 2 x 12-month extensions (subject to conditions)

Investment Overview

Ocean Village will be a premier 314-unit apartment community featuring four residential buildings, each three to four stories tall and equipped with elevators—a rare offering in a submarket dominated by walk-up buildings. Units will boast high-end finishes, including 10-foot ceilings, oversized windows, stainless steel appliances, quartz countertops, and private balconies or patios.

Ocean Village’s community amenities include a resort-style pool and sundeck with cabanas; a pet park and spa; walking trails; a fitness center and yoga lawn; a bike shop with storage; a clubhouse with business center and coffee bar; and an outdoor kitchen with fireplaces.

Construction is set to commence in May 2025 with delivery expected in early 2027.

Strategic rationale

Strong demographics and limited competition

Palm Coast has experienced remarkable growth—population within a 3-mile radius has risen 42% since 2010, with another 16% increase between 2020 and 2024. Projections estimate another 46% growth by 2029. Ocean Village is the only new multifamily development currently under construction east of I-95, a highly desirable location just five minutes from Flagler Beach.

Elevator access and modern amenities

Renters in the local submarket have consistently indicated a preference for buildings with elevators, something Ocean Village will uniquely deliver. Combined with a robust amenity package, this development is well-positioned to meet untapped demand for modern, accessible living.

Sponsor relationship

This is not our first time working with the sponsor—our previous partnership proved successful, and we’re excited to continue collaborating with a team that has demonstrated both executional discipline and market insight.

Why this matters now

Against a backdrop of mounting economic uncertainty—from shifting trade policies to slowing global growth—investors are facing a more complex risk environment. In this context, fixed-return real estate investments like Ocean Village take on renewed importance. With a 13.00%¹ gross annual return and a preferred equity structure, this investment provides a blend of yield and resilience.

Unlike traditional income vehicles that are sensitive to rate policy or market cycles, preferred equity in high-demand multifamily developments offers consistent income supported by real asset value. As the Fund continues to target opportunities that offer attractive income streams in structurally undersupplied markets, investments like Ocean Village play a key role in sustaining our current 7.5%2 annualized distribution rate.

As always, we remain committed to building a diversified, resilient portfolio that performs through market cycles—offering you the potential for strong, stable income.

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