We're pleased to announce a new addition to your Fundrise portfolio: a preferred equity investment in a 395-unit multifamily community in Austell, Georgia, within the Atlanta metro area. The investment carries a 13.00%¹ annual gross interest rate.

This is a recapitalization of a stabilized, income-producing property, meaning it is already built, already leased, and already generating rental income. Our preferred equity investment will be used to pay off existing debt on the property, replacing it with a new capital structure. For investors, the key advantage is straightforward: we're backing an asset with an established operating history, not a set of projections.

Investment highlights

  • Investment type: Preferred equity
  • Annual gross interest rate: 13.00%¹
  • Location: Austell, GA (Atlanta MSA)
  • Asset type: 395-unit stabilized multifamily community
  • Investment term: 5 years
  • Funds: Income Real Estate Fund and Opportunistic Credit Fund II

Investment overview

The property consists of seventeen three-story residential buildings with a mix of one-, two-, and three-bedroom units. Community amenities include a resort-style pool, fitness center, picnic areas, dog park, coworking lounge, and private garages.

The preferred equity sits junior to Freddie Mac's senior debt on the property. The presence of agency financing from Freddie Mac on the senior position is a meaningful signal: agency lenders apply rigorous underwriting standards before agreeing to finance a property, providing an additional layer of due diligence on the asset's quality and cash flow stability.

Local market insights from RealAI

The property is located in the Austell submarket of the Atlanta MSA, the nation's seventh-largest metro area with approximately 6.4 million residents. RealAI reports that Atlanta's population has grown at a +1.1% annual pace, underpinned by a deep employment base that includes 16 to 18 Fortune 500 headquarters (Home Depot, UPS, Delta Air Lines, Coca-Cola, and Southern Company among them) and a thriving technology corridor in Midtown's Tech Square. MSA job growth of +2.2% over the past year ranks among the strongest in the Sun Belt, and the region's median household income of approximately $98,000 continues to trend upward.

Multifamily fundamentals at the MSA level remain healthy, with occupancy near 92% and in-place rents of approximately $1,645 per month. Over the past several quarters, the Austell submarket has experienced a supply increase, which has softened overall occupancy rates as the new supply has absorbed demand. The supply pressure is easing however: multifamily housing starts have dropped, Cobb County's forward permit pipeline is projected to decline approximately 22% over the next 12 to 24 months, there are currently no multifamily developments under construction within a five-mile radius of the property, and asking rents showed an increase between January and February of 2026.

What backs this investment

While concerns about private credit have been growing across the broader market, it's important to understand that not all private credit is the same. At Fundrise, we lend almost exclusively against real assets — physical, income-producing properties in strong markets with real equity behind our position.

This investment is a good example of that approach. We're backing a stabilized apartment community with established cash flows in one of the nation's largest employment markets.If the borrower were to fail to perform, we would have recourse to a tangible asset with established cash flows, not a set of revenue projections.

We feel as good about the Fundrise private credit strategy today as we have at nearly any point in the past decade. For a deeper look at how our approach differs from the types of private credit making headlines, read our recent update, Private Credit: What You Should Know.

Impact on your portfolio

This investment strengthens both funds' income profiles. The 13.00%¹ gross return contributes to the Income Real Estate Fund's current 8%² annualized distribution rate, while also supporting the Opportunistic Credit Fund II's current 11%² annualized distribution rate. This stabilized investment adds an additional dimension to the portfolio: an asset with an established operating history that complements our ground-up development positions.

As always, we remain committed to sourcing investments that deliver strong, stable returns through disciplined underwriting and a focus on real assets in compelling markets.

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