In November of 2017, we invested roughly $5.8 million in the construction of Estraya on the Bluffs, a 270-unit luxury apartment community located in Georgetown, Texas, a northern suburb of Austin. Plans for this roughly $40 million construction project include a community clubhouse, pool house, and 17 residential buildings.
Today, we’re pleased to report that substantial progress has been made on the project. As you can see from the photos, the main clubhouse, pool house, and six residential buildings are taking shape with roofing installed. While moving forward with window and siding installations, and interior build-outs on the first set of buildings, we are already laying foundations and framing the next set.
This project is another great example of our construction financing strategy aimed at reducing risk while maintaining strong returns. As is typical in our construction projects, we did not provide our full $5.8 million commitment at the start. Instead, our investment has been drawn down in several installments, with each draw contingent on the completion of set construction milestones. This helps to significantly reduce the overall risk of our investment while targeting an attractive return — in this case roughly 10% annually.
We anticipate completion of construction in the spring of 2020 and look forward to providing you with further updates on this project.
