Portfolio Update: New preferred equity investment in the Sarasota metro area

New high-yield investment with a 12.75% fixed return in a 217-unit multifamily development in Parrish, FL.

Aug 29, 2025

We're excited to announce a new addition to your Fundrise portfolio: a preferred equity investment in a 217-unit multifamily development in Parrish, Florida, within the Sarasota MSA. This investment offers an attractive 12.75%¹ annual gross return, further supporting the Income Real Estate Fund's already-strong yield.

Investment highlights

Investment type: Preferred equity
Projected return: 12.75%¹ gross annual return
Location: Parrish, FL, positioned within the Sarasota MSA and Palmetto/Ellenton submarket

Investment overview

This premium 217-unit garden-style community will feature multiple three-story and three four-story buildings with enclosed, air-conditioned corridors, a standout feature in this submarket. Units include open-concept floor plans, quartz countertops, stainless steel appliances, and large terraces. Community amenities feature ample garage parking with direct building access, resort-style saltwater pool with poolside cabanas, fitness center, co-working space, and dog park.

Market opportunity

The property sits in one of Florida’s fastest-growing corridors, where the population within three miles has surged 44% since 2010 and is projected to grow roughly another 15% by 2029. The median household income within a five-mile radius outpaces the broader county’s median income, indicating strong rental demand. Located only three miles from I-75, residents can easily reach downtown Sarasota and St. Petersburg, while also benefiting from immediate access to established retail including Creekside Commons, Publix, and Ellenton Premium Outlets.

Strategic advantages

Differentiated product: The property's enclosed, air-conditioned corridors and direct garage access represent meaningful differentiators in a submarket where most comparable properties offer only traditional walk-up access.

Favorable supply dynamics: Multifamily starts fell approximately 25% in 2024 and are projected to be down another 11% in 2025, meanwhile completions peaked in 2024 and are forecast to decline through 2027. The translation: the 2023-24 delivery surge is fading, and new construction starts remain constrained by higher borrowing costs and tighter credit conditions. This dynamic supports tighter vacancy rates and firmer rent growth heading into 2026-2028, precisely when this development will be entering the market.

Fixed-rate advantage: The 12.75%¹ return contributes to the Income Fund's current 7.75%² distribution rate — roughly 300+ basis points above average money market funds. As the market expects the Fed to continue easing rates near to medium term, this fixed-rate structure provides attractive income with reduced downside risk.

What's next

As we've discussed in previous updates, the current environment continues to create windows of opportunity for attractive risk-adjusted returns. We anticipate that the Income Fund's yield will remain robust even as market conditions shift. We expect fixed-rate investments like this one to continue supporting our current distribution rate while providing the stability our investors have come to expect.

As always, Fundrise remains committed to sourcing investments that align with our long-term objectives of delivering strong, stable returns through disciplined underwriting and active asset management, regardless of inevitable shifts in market cycles and economic conditions.

1. This solely represents a fixed rate of preferred return due to the Fundrise Income Real Estate Fund under the terms of its investment agreement(s) and does not reflect either a gross or net return that an investor in the Fundrise Income Real Estate Fund may expect to receive as a result of this fixed rate return. Due to the uncertainty of other factors that will ultimately determine the return to any investor (such as leverage, cash drag, and other potential financings), the performance of this asset to the investor is currently unknowable and undeterminable, and may ultimately be lower or higher than the stated fixed rate of preferred return.

2. As of August 2025. The current month's distribution is annualized and divided by the prior month's net asset value per share.

Disclosure: An investor in the Fundrise Income Real Estate Fund should consider the investment objectives, risks, charges, and expenses carefully before investing. The Fund’s prospectus contains this and other information and may be obtained here. Investors should read the prospectus carefully before investing.