In November 2018, we invested roughly $7.5 million in the construction of Mosby Lakeside, a 316-unit apartment community in Pooler, Georgia, just outside Savannah. The project is conveniently located at the interchange of Interstate 16 and Pooler Parkway, two major local corridors, and less than a mile from a major retail development.
As you can see from this recent aerial photo, four of the residential buildings and the clubhouse have begun to take shape. Once structural work is complete, the sponsor can begin to install the roof, siding, and windows. At the same time, structural work is beginning on the remaining buildings. We expect construction to wrap up sometime next summer.
At a strategic level, financing the construction of new apartments in fast-growing areas continues to present an opportunity to earn attractive yields — in this case, 12% annually — at a time when record asset prices have driven the yields on public stocks and bonds to near-historic lows.
Investor FAQ: How does an individual project impact your portfolio?
This investment is structured like 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 has generated has supported quarterly dividends for the Income eREIT II.
We look forward to providing you ongoing updates on this and the many other projects in your portfolio. As always, don’t hesitate to reach out to Investments@fundrise.com with any questions or feedback.
