We’ve invested roughly $4.8 million in the Riverstone Apartments, a 220-unit apartment community in Macon, Georgia. This project is part of an 11-asset portfolio located in Georgia, which includes six other projects we acquired earlier this summer.
At a strategic level, we continue to see opportunities to earn attractive risk-adjusted returns by identifying older, affordably-priced apartments in growing areas across the Sunbelt, and performing renovations aimed at increasing rental income and property values.
Business plan
The property was roughly 97% occupied when we invested. The project’s sponsor, Carter Multifamily, plans to upgrade the community amenities and renovate all 220 apartments as they turn over. We expect this value-add program to drive an increase in rental income, and consequently, the overall value of the property.
Following the completion of renovations, Carter Multifamily plans to actively manage the property for roughly five years before seeking exit opportunities via sale or refinance. During the term of the investment, we are entitled to our share of the monthly cash flow. Upon exit, we are entitled to receive a return equivalent to roughly 10.6% annually (including the cash flow we received in the interim) before the sponsor can earn a return for themselves.
Why we invested
- Experienced sponsor: Carter Multifamily is a Florida-based real estate investment firm that specializes in renovating apartment communities across Alabama, Florida, Georgia, Louisiana, and North Carolina. Their current portfolio is valued in excess of $100 million.
- Paid first upon exit: Upon sale or refinance, we are entitled to receive a return equivalent to 10.6% annually (including the cash flow we received in the interim) before the sponsor can earn a return for themselves.
As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
