In May 2018, we invested roughly $12.7 million in the construction of a 29-unit condo building in the Koreatown area of Los Angeles. Today, we are pleased to report that major progress has been made, with the building close to topping out less than 18 months after we invested.
While the project experienced initial delays due to heavy rain, we anticipate an on-time delivery with major construction complete by the end of spring 2020. Upon completion, the developer plans to sell the condos and use the proceeds to pay back our investment.
How this project impacts your portfolio
Our investment in this project is structured as debt, where the borrower 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.
While construction moves along, our investment continues to earn an annualized return of roughly 9.3%, which supports dividends for the Income eREIT. At the same time, the successful completion of each construction milestone reduces the overall risk of the project.
We look forward to providing further updates as structural work wraps up and the interior begins to take shape. As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
