In January 2016, we invested $2 million in a stabilized 228-unit apartment community in Richland, Washington. The sponsor recently paid back $1.9 million of our principal (roughly 95% of our initial investment).
We’re pleased to announce that this investment has earned an internal rate of return of roughly 12%¹ through this partial payoff on November 5, 2018. We expect to continue to earn returns on the remaining principal of our investment until fully paid off, which we anticipate will occur by July 2021.
Investor FAQ: How does an individual project impact your portfolio?
This investment is structured as debt, where the 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 this investment, the regular income it generates supports quarterly dividends for the Income eREIT.
Being cognizant of our current economic climate — late in the expansion phase of the economic cycle — we continue to focus on debt and debt-like investments in an effort to fortify your Fundrise portfolio for times of turbulence, while preparing to aggressively pursue future opportunities that may arise as a result of that same turbulence.
