In October 2017, we invested roughly $4.6 million in the construction of Volaris Live Oak Apartments, a 300-unit apartment community in Sarasota, Florida. The finished product is expected to include six apartment buildings, a fitness center, a pool, and a clubhouse on the 14+ acre property.
Today, we’re pleased to report that substantial progress has been made on the project. As you can see from the photos, construction is substantially complete on four of the residential buildings and community amenities. The first residents began moving into the community in February 2019.
While the finished units are leasing up, construction continues on the remaining two residential buildings. We anticipate substantial completion of construction in the summer of 2019.
At the time of this update, this is one of nine investments on which we have partnered with Waypoint Residential, a Florida-based multifamily owner and developer with over $3 billion invested across 22,000 units. Their performance on this and similar projects, including the completion of Estraya at Falcon Pointe Apartments, continues to strengthen our confidence in Waypoint as a partner.
We look forward to providing you with further updates on this project as it nears completion.
Investor FAQ: How does an individual project impact your portfolio?
This investment was structured like debt, where the project’s sponsor must pay us a fixed rate of return — in this case 10% annually — 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 has generated has supported quarterly dividends for the Income eREIT.
