Note: both the Growth eREIT and Income eREIT II invested roughly $6.8 million in this property, for a total Fundrise investment of approximately $13.7 million.
We’ve invested approximately $6.8 million in the acquisition of the Reef Apartments, a brand new 924-bed student housing community in Fort Myers, Florida. Construction on the community was completed in 2017, featuring two resort-style pools, a gym, lake views, grilling stations, and outdoor games.
Business plan
As of August 29, 2018, the property was more than 97% occupied. The sponsor, Coastal Ridge Real Estate, plans to take over management of the community through the term of our investment. Our goal is to earn consistent cash flow from interest payments through September 2028, when they plan to take out our position by either finding a buyer or refinancing the property.
Why we invested
- Experienced sponsor: This is our second deal with the sponsor, Coastal Ridge Real Estate, an Ohio-based real estate firm that specializes in the management of student housing communities throughout the US. The company currently manages more than 15,300 student housing beds and a total portfolio of real estate with an estimated value of $1.5 billion.
- Attractive margin of safety: Coastal Ridge Real Estate has more than $17 million of equity junior to our position. The value of the apartment complex would have to fall by at least 20% before our principal would be threatened.
- Growing demand: Over the last ten years, the annual growth of nearby Florida Gulf Coast University's enrollment has been approximately 5.5%. In the Fall of 2017, the University enrolled 14,957 and only provided on-campus housing for 4,748 students.
