We're excited to announce a new addition to your Fundrise portfolio: a preferred equity investment in an adaptive-reuse development converting a vacant office building into a 180-unit age-restricted (55+) multifamily community in Fairfax, Virginia. This investment offers an attractive 14.00%1 gross annual return, further supporting the Income Fund's current distribution rate.
Investment overview
This investment represents an innovative adaptive-reuse project that transforms underutilized office space into modern senior housing in the heart of one of the most affluent counties in the country. The development will feature two five-story residential buildings with elevators, creating 180 age-restricted units designed for residents 55 and older. Units will include high-end finishes such as vinyl wood plank flooring, granite countertops, stainless steel appliances, private balconies and patios, walk-in closets, and spacious bathrooms.
The community will offer extensive amenities including a bistro and sports lounge, exterior dining deck, health and wellness club, golf simulator, club room, art studio, theater, library, workshop, walking trails, and grilling stations.
Investment strategy and structure
Preferred equity position: The investment is structured as preferred equity, providing priority returns ahead of common equity and the sponsor.
Compelling demographics: The primary market area features over 100,000 seniors aged 65 and older, with approximately 45,000 income-qualified senior households earning more than $50,000 annually. The median senior household income ranges above $125,000, and the broader five-mile radius shows a median household income of $142,687.
Market opportunity: This development benefits from a supply-constrained market, with the Fairfax/Oakton multifamily submarket maintaining a vacancy rate of just 4.4%, well below the wider DC MSA vacancy rate of 7.4%. The development also creates a competitive advantage by targeting renters 55+ while most nearby active adult and senior living assets require residents to be 62+, expanding the potential renter pool.
Experienced sponsor: The sponsor brings proven expertise in adaptive-reuse projects, specifically converting office buildings to residential use—a specialized skill set that's increasingly valuable in today's real estate environment.
Why this matters now
The Income Fund continues to find attractive opportunities in today's credit markets. This new investment’s 14.00%1 fixed return helps sustain the Income Fund’s current 7.75%2 distribution rate, even as yields on savings accounts and other income products decline.
The adaptive-reuse nature of this investment also addresses a growing trend as communities nationwide seek to repurpose underutilized commercial real estate into much-needed housing. This development exemplifies this transformation while serving the expanding demographic of active seniors who want modern amenities and community-oriented living.
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.
