We're pleased to announce the latest addition to the Fundrise Income Real Estate Fund: a preferred equity investment in a 214-unit ground-up multifamily development in Denver, Colorado. This investment carries a 13.85%¹ gross annual return, supporting the Income Fund's recently increased 8%² annualized distribution rate.

Investment overview

This ground-up development will feature thirteen two- and three-story residential buildings, with the two-story buildings designed as carriage-style townhomes offering a differentiated living experience. Community amenities include a resort-style pool, spa, sauna, fireplaces, golf simulator, and fitness center.

The property is part of the larger Link 56 master plan, a mixed-use development featuring over 30 acres of commercial space anchored by a 150,000 square foot Target. The development sits within walking distance of the Peña Station light rail stop, providing direct access to both Denver International Airport and downtown Denver.

Location and demand drivers

Denver's multifamily market has demonstrated remarkable strength, with absorption recently exceeding 6,000 units in a single quarter, meaning more than 6,000 units were leased and occupied in just three months. This robust demand has driven market vacancy down from 6.91% to 6.39%, signaling a healthy and tightening rental market.

Denver International Airport employs over 40,000 people directly, creating substantial rental demand in the surrounding submarket. The Peña Station light rail stop,adjacent to the development, is the final stop before reaching DIA, making this location particularly attractive for airport employees seeking convenient housing.

Adding to this demand profile, United Airlines is developing a major new campus on a 113-acre site it purchased in 2023 just north of the Link 56 master plan. The first phase is expected to complete by fall 2027, with future phases envisioning a multi-million square foot development including offices, parking garages, fitness centers, and conference spaces that could house approximately 6,000 employees.

Investment structure

  • Preferred equity position: Structured as preferred equity with priority positioning in the capital stack ahead of common equity.
  • Fixed return: The 13.85%¹ gross annual return supports the Income Fund's 8%² annualized distribution rate.
  • Strategic positioning: Located within a master-planned mixed-use development with direct light rail access to DIA and downtown Denver.

The bigger picture

This investment reflects the broader opportunity we continue to see in the commercial real estate credit markets. New preferred equity deals continue to come in at compelling risk-adjusted returns, which has helped increase our annualized distribution rate from 7.75% to 8%² as of January 2026.

Our pipeline remains strong. As traditional fixed income products like high-yield savings accounts, money market funds, and bonds see yields compress alongside falling interest rates, we believe the Income Fund's fixed-rate portfolio positions it as an increasingly compelling alternative for income-oriented investors.

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