In May 2017, we invested in the construction of five new homes in Carlsbad, CA, near San Diego. We’re pleased to announce that the investment paid back in full last month, earning an annualized return of roughly 9%¹ over the 17-month term. The project’s sponsor paid all interest payments in full during the period, and used the proceeds from selling the first few homes to pay back the principal of our loan.
As you can see from the photos, the homes turned out beautifully, featuring modern luxury finishes and environmentally-friendly construction, including solar panels, all just over a mile from the beach. If you haven’t already, we’d encourage you to watch the video update we did on this project in June to get a sense for the transformation.
Investor FAQ: How does an individual project impact your portfolio?
This investment was structured as a loan (debt), where the project’s sponsor must pay us a fixed rate of return before they can earn a return for themselves, and their equity provides us with a cushion against losses. Throughout the term of the investment, the regular income it generated supported quarterly dividends for the West Coast eREIT.
