We're pleased to announce a new addition to the Fundrise Income Real Estate Fund: a preferred equity investment in a 275-unit ground-up multifamily development in Salt Lake City, Utah.

Investment overview

  • Investment type: Preferred equity
  • Annual gross interest rate: 13.00%¹
  • Location: Salt Lake City, UT
  • Asset type: 275-unit ground-up development
  • Investment term: 3.5 years
  • Fund: Income Real Estate Fund

The property is an eight-story residential building featuring quartz countertops, stainless steel appliances, and smart home technology throughout. Community amenities include a resort-style pool, a fitness center, a rooftop deck, a two-level clubroom with game room, a wellness center with infrared sauna and cold plunge, a dog park and pet spa, and direct access to nearly 100,000 square feet of ground-floor retail. The development is targeting completion in 2027.

Local market insights from RealAI

The property is located in Salt Lake City's Granary District, a transformational urban corridor at the gateway to downtown. RealAI reports that The Granary District is part of a broader initiative that aims to add over 700 housing units and 100,000 square feet of retail to the area, including adaptive reuse of historic buildings. The adjacent Post District, which delivered 474 units in December 2023, has already established this stretch as a mixed-use, walkable urban neighborhood. The Granary's proximity to downtown, Pioneer Park, and the broader west-side revitalization positions it as a long-term beneficiary of Salt Lake City's urban densification strategy.

Salt Lake City's economic fundamentals remain among the strongest in the Mountain West. The MSA's population of 1.3 million is growing at +1.1% annually, supported by job growth of +3.2% over the past year and +14.8% over five years. The city added nearly 250,000 jobs over the past decade, with tech sector expansion and broader economic diversification driving forward momentum. Median household income of $106,496 ranks in the 96th percentile nationally, the renter base is well-educated (86th percentile nationally for educational attainment), and median net worth sits in the 93rd percentile.

On the multifamily supply side, the Salt Lake City market is emerging from a two-year oversupply correction and is now positioned for recovery. MSA occupancy has climbed to 92.9% as of April 2026, and the forward multifamily permit pipeline has declined 37%, signaling that the supply wave has crested. Forecasts project continued occupancy gains through 2026 and 2027 as the remaining supply is absorbed. The market is tightening faster than anticipated, which supports lease-up velocity for new deliveries like this one.

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 properties in strong markets with real equity behind our position.

This investment is a good example of that approach. Our preferred equity position gives Fundrise priority in the capital stack ahead of common equity. If the borrower were to fail to perform, we would have recourse to a tangible asset in one of the nation's fastest-growing metros, 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.

Portfolio impact

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. This ground-up development position reflects our conviction in sourcing opportunities where we can capture returns from the earliest stages of value creation, backed by disciplined underwriting and strong sponsor relationships.

In today's rate environment, a return like this on a real asset-backed credit investment represents a meaningful premium over what traditional fixed income alternatives can offer. That spread is the core of the Income Fund's strategy, why the Fund continues to offer an attractive risk-adjusted return for income-oriented investors.

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