We’re excited to highlight an investment in the Fundrise portfolio: a preferred equity investment in Aubrey Development, a 188-unit horizontal multifamily community located in Aubrey, Texas, northwest of Dallas. This investment is structured to deliver a compelling 14.00%¹ gross annual 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: 14.00%¹ gross annual return
  • Location: Aubrey, TX (Dallas-Fort Worth MSA)
  • Investment horizon: 4-year term, with optional 12-month extensions (subject to conditions)

Investment overview

Aubrey Development will be a 188-unit horizontal multifamily rental community designed to combine the privacy of single-family living with the convenience and amenities of a professionally managed community.

The property will offer 10 distinct floor plans ranging from 344 to 1,399 square feet with the majority of units featuring private, fenced backyards. Interior finishes will align with the high-end standards of comparable Class A properties in the region and amenities will include a resort-style pool, fitness center, dog park and pickleball courts. The development is expected to be completed in 2027.

Aubrey Development will sit within a larger master plan, which includes for-sale single-family homes, townhomes, and future neighborhood retail—creating a mixed-use environment that supports long-term tenant appeal.

Strategic rationale

Explosive regional growth

Aubrey Development sits within Denton County—ranked the sixth fastest-growing county in the U.S., according to the U.S. Census Bureau. Within a five-mile radius of the site, the population is expected to grow at an impressive 4.3% annually from 2024 through 2029.

Strategic location and connectivity

Located just one mile north of US 380, the property is positioned for direct access to major employment centers in Denton, Frisco, Plano, and McKinney. Key nearby employers include the University of North Texas, Peterbilt Motors, Conifer Health Solutions, and several major healthcare institutions.

Differentiated product type

Horizontal multifamily—or "cottage-style" communities—is an emerging category offering residents the feel of a single-family home with the advantages of professionally managed rental living. These communities are proving especially popular with renters seeking privacy, space, and outdoor amenities, while offering investors a differentiated asset with strong leasing demand.

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 Aubrey Development take on renewed importance. With a 14.00%¹ gross annual return and a preferred equity structure, this investment provides a rare 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 growing markets, investments like Aubrey Development play a key role in sustaining our current 7.5%2 annualized distribution rate.

Our goal is simple: to help you earn steady income through a diversified portfolio that’s built to weather market ups and downs.

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