We're excited to announce a new addition to your Fundrise portfolio: a preferred equity investment in a 252-unit ground-up multifamily development in Huntsville, Alabama. This investment offers a 14.25%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: 14.25%¹ gross annual return
  • Location: Huntsville, AL
  • Investment horizon: 3.5-year initial term, with an optional two 12-month extensions (subject to conditions)

Investment overview

The full development will feature 46 one-story residential buildings. The units will include faux-wood flooring, granite / quartz countertops, stainless steel appliances, private patios, 9' ceilings, and oversized windows. Each unit will have its own garage, with two parking spots for the two-bedroom units. Community amenities include a resident clubhouse, fitness center, yoga studio, cybercafé, pool, grilling area, and pet park.

Why Huntsville? A market built on innovation and stability

This asset isn’t just a solid investment on paper—it’s strategically positioned in one of the country’s most quietly powerful economic corridors.

The development sits in the University / Research Park submarket of Huntsville, an area seeing consistent population and income growth. Between 2010 and 2023, the population within a 5-mile radius of the site grew by 19%, and it's projected to increase another 2.2% annually through 2029.

Even more compelling is the economic engine that powers this region. The Redstone Arsenal, a United States Army installation, less than 15 minutes away, is the market’s largest employer, with over 50,000 personnel. The FBI plans to open a 250,000-square-foot Innovation Center in 2026 for cyber threat intelligence, digital forensics, and AI-driven tool development.

Adjacent to Redstone is Cummings Research Park (CRP), the second-largest research park in the U.S. and the fourth-largest globally. It’s home to over 300 companies—including Lockheed Martin, Northrop Grumman, Boeing, and Raytheon—and over 13,500 students at the University of Alabama Huntsville. This synergy of defense, tech, and academia creates a steady flow of high-income residents and job growth, enhancing long-term rental demand.

Adding to the momentum, the nearby North Huntsville Industrial Park—home to a Meta data center and Toyota-Mazda manufacturing plant—is expanding. Toyota recently announced a $282 million upgrade, adding 350 more jobs to its existing 2,000-person workforce.

Why this matters now

In an environment marked by increased uncertainty and heightened market volatility, many investors are increasingly searching for reliable sources of income. That’s where fixed-return investments like this Huntsville development stand out. With a 14.25%¹ gross annual return and a preferred equity structure, this opportunity combines yield with downside protection.

Unlike traditional income products that fluctuate with interest rates or market sentiment, our preferred equity investments in growing multifamily markets are backed by real assets. As part of our broader strategy, this investment helps support the Income Fund’s 7.75%2 annualized distribution rate—providing stability in an otherwise uncertain landscape.

We continue to focus on building a resilient, well-diversified portfolio designed to generate consistent income—even as public markets remain unpredictable.

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