In December 2016, we invested roughly $7 million in the construction of Estraya Westover Hills, a 278-unit apartment community in San Antonio, Texas. After completing construction in late 2018, the project’s sponsor, Waypoint Residential, began to lease up the units, achieving 92% occupancy in just over six months.
Now that the property is stabilized, they’ve secured long-term financing at a lower rate and paid back our investment. All preferred return payments were paid in full during the investment period, generating an annualized return of approximately 10%¹, which matches our initial projection.
Waypoint’s strong execution on Estraya Westover Hills reinforces our confidence that they will continue to perform on the six other development projects we’ve invested in with them.
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 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 generated supported quarterly dividends for the Heartland eREIT.
As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
