We’ve invested roughly $18.1 million in the acquisition and renovation of Amira at Westly, a 360-unit apartment building in Tampa, Florida. This is our fourth investment in the Tampa area, where population growth has more than doubled the national average since 2010.

At a strategic level, all signs point to us being even later in the business cycle, with asset prices at near-record highs. However, a brief period of low interest rates and a dip in prices in Q2 2019 created a window of opportunity for us to make equity investments into apartment properties like this one at attractive risk-adjusted returns.

The Amira at Westly joins eight other similar projects that we acquired in June, bringing our total equity investment into apartment renovations during this brief window of opportunity to $101 million.

Business plan

Built in 1999, the apartment buildings are in good condition but in need of a facelift to remain competitive. The previous owner had already begun a value-add program, renovating 16 of the 360 units.

Our partner, American Landmark Apartments (ALA), plans to fully renovate the remaining units while improving the common areas with fresh paint and upgrades to the clubhouse and pool area. We expect this investment to drive an increase in rental income, and consequently, the overall value of the property.

Following the completion of renovations, we plan to actively manage the property for roughly ten years before seeking opportunities for an exit via sale or refinance. Our goal is to earn consistent income over the duration of our holding period, with the potential for long-term upside by selling the property for more than we put into buying and renovating it.

Why we invested

  • Experienced sponsor: American Landmark Apartments (ALA) currently owns and operates over 24,000 units with a diverse real estate portfolio valued in excess of $2 billion. Prior to this acquisition, we have partnered with ALA on sixteen other projects, including The Enclave at Lake Ellenor in Orlando, which achieved a 39% appreciation in appraised value in just 21 months.
  • Strong market outlook: The Tampa Bay metro area grew by nearly 13% between 2010 and 2018, more than double the national average. With 3.1 million residents as of 2018, the metro area is the second-largest in Florida. We believe this property presents a strong opportunity, due to its central location nearby many major employers.
  • Income-generating asset: The property was 90% occupied at the time of our investment, generating consistent cash flow through rental income.

As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.