We're excited to announce a new addition to your Fundrise portfolio: a preferred equity investment in a 220-unit ground-up multifamily development in Salt Lake City, Utah. With a 13.00%¹ annual gross return, this investment supports our recently increased Income Real Estate Fund distribution rate of 7.75%.²

Investment highlights

  • Investment type: Preferred equity
  • Projected return: 13.00%¹ gross annual return
  • Location: Salt Lake City, UT
  • Investment horizon: 3.5-year initial term, with optional 12-month extension plus 36-month mini perm extension option (subject to conditions)

Investment overview

The development will be a six-story residential building with elevators, featuring premium finishes including quartz countertops, stainless steel appliances, and smart home technology. Select upgraded Penthouse units will offer enhanced luxury features. The community will include resort-style amenities: a pool, 3,900 SF fitness center, rooftop deck, two-level clubroom with game room, wellness center with infrared sauna and cold plunge, direct access to nearly 100,000 SF of retail space, and a dog park and spa.

Construction commenced in July 2025, with delivery expected in mid-2027. The sponsor anticipates a sale of the property after a four-and-a-half year hold period.

Why Salt Lake City? A market positioned for sustained growth

This investment isn't just about attractive returns—it's strategically positioned in a market experiencing significant economic momentum and demographic tailwinds.

The property sits within Salt Lake City's Downtown submarket, at the gateway to the city off Interstate 15 with visibility to 86,000 vehicles daily. The site offers walkable access to over 80,000 SF of retail within the larger Silo Park and Post District developments.

The local fundamentals are compelling. The population within a 2-mile radius of the property is forecasted to grow 2.3% annually through 2029, driven by diverse economic expansion beyond the region's tech sector foundation.

A diversified economic engine powers the market. While tech companies provide the backbone, manufacturing, tourism, and finance sectors create stability. Salt Lake City houses 15 industrial banks that account for roughly one-fifth of Utah's financial assets. Major expansion announcements include CleanJoule committing to 100 high-paying jobs and $150 million in investment over the next decade, and Strider planning to create more than 150 jobs in the next five years.

Tourism infrastructure investments are creating lasting economic impact. The $4.1 billion Salt Lake International Airport expansion, with phases completing through early 2026, will support an estimated 34 million visitors annually. The Salt Lake metropolitan area generates roughly 40% of the state's tourist tax revenue, serving as the gateway to numerous ski resorts and national parks.

Perhaps most significantly, Salt Lake City will host the 2034 Winter and Paralympic Games. Local officials predict an economic impact of $6.6 billion, providing sustained demand drivers for residential and commercial real estate well beyond the games themselves.

Why this matters now

In today's environment of market uncertainty, investors are increasingly focused on reliable income sources. That's where fixed-return investments like this stand out. With a 13.00%¹ gross annual return and preferred equity structure, this opportunity combines attractive yield with downside protection.

Unlike traditional income products that fluctuate with market conditions, our preferred equity investments in growing multifamily markets are backed by real assets in markets with strong fundamentals. 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 building a resilient, diversified portfolio designed to generate consistent income across market cycles, focusing on markets with strong demographic and economic tailwinds like Salt Lake City.

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