Portfolio Update: A 12.5% preferred equity investment in Tampa, FL

The Income Real Estate Fund and the Opportunistic Credit Fund II closed a 12.5% gross rate investment for a 324-unit multifamily development.

Jan 12, 2026

We're pleased to announce a new addition to your Fundrise portfolio: a preferred equity investment in a 324-unit garden-style multifamily development in Tampa, Florida. The investment carries a 12.50%¹ gross return, reflecting the compelling opportunities we continue to identify in the commercial real estate credit markets. The investment was made through a joint venture between two Fundrise-sponsored funds, the Income Real Estate Fund and the Opportunistic Credit Fund II.

Investment overview

This ground-up garden-style community will feature two four-story buildings and two three-story buildings, along with a stand-alone amenity and leasing building. The development will offer modern living spaces with matte black plumbing fixtures, stainless steel appliances, granite countertops, full-size washers and dryers, screened-in balconies on all units, and walk-in closets.

Community amenities include 50 available garages, a resort-style swimming pool, private grill and seating areas, a fitness center with group fitness rooms, and a dog park.

Investment structure

Preferred equity position: Structured as preferred equity with priority positioning in the capital stack ahead of common equity.
Attractive yield: The 12.50%¹ gross return supports OCF II's newly announced 11%² annualized distribution rate (effective January 1, 2026) and the Income Fund's increased 8%³ annualized distribution rate (up from 7.75%).
Strategic location: Positioned in Southeast Tampa with direct access to major employment centers and transportation corridors.

Market opportunity

The property sits in a high-growth corridor within the Southeast Tampa submarket. The population within a three-mile radius grew 88.6% between 2010-2024 and is anticipated to grow another 9.14% through 2029.

The development benefits from exceptional proximity to major employers. It sits half a mile from a large JPMorgan office building hosting more than 3,000 employees and one mile from Citibank Center, which employs an additional 4,000-plus workers. The Tampa campus represents a major hub for Citibank, with more than 25 businesses operating on site. Both companies recently invested $60 million into facility upgrades, underscoring their long-term commitment to the area.

Market dynamics

This investment demonstrates that attractive opportunities continue to exist in the commercial real estate credit markets even as the Fed Funds rate has come down 75 basis points in the last three months. The combination of explosive demographic growth, proximity to major employment centers, and strong transportation connectivity creates a particularly compelling opportunity.

We expect the fixed 12.50%¹ return on this and similar preferred equity investments will become increasingly attractive as traditional fixed income yields compress. While savings vehicles and floating-rate products decline with Fed rates, the fixed nature of these credit investments positions both funds to sustain strong distributions even as market rates fall.

Impact on your portfolio

This investment strengthens both funds' income profiles. The Income Real Estate Fund recently raised its distribution rate to 8%³ (up 25 basis points), while the newly launched OCF II declared an 11%² annualized distribution rate—both delivering competitive yields backed by fixed-rate credit positions.

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

1. This solely represents a fixed rate of preferred return due to the Opportunistic Credit Fund and Fundrise Income Real Estate Fund under the terms of their investment agreement(s), and does not reflect either a gross or net return that an investor in the Opportunistic Credit Fund or 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. However, please note that all investors in the Fundrise Income Fund will be subject to a 0.85% asset management fee and 0.15% advisory fee, and all investors in the Opportunistic Credit Fund will be subject to a 1.75% fund management fee, and, if the Opportunistic Credit Fund is able to achieve a greater than 10% overall return on its portfolio, which is also uncertain and undeterminable at this time, then the asset will also be subject to an additional 20% performance-based fee for those Opportunistic Credit Fund investors.

2. As of January 2026. The Opportunistic Credit Fund II’s current month's distribution is annualized and divided by the prior month's net asset value per share.

3. As of January 2026. The Income Real Estate Fund’s 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.