In November 2016, we invested roughly $3 million in the construction of Estraya at Falcon Pointe, a 324-unit apartment community in Pflugerville, Texas, just outside Austin.
After completing construction in June 2018, the project’s sponsor, Waypoint Residential, began to lease up the units and position the community for sale to a long-term buyer.
Last month, they successfully sold the property and paid back our investment, which earned an annualized return of approximately 11%¹, matching our initial projection.
Following the payback of a similar project in June of this year, this is our second success story in 2019 with Waypoint Residential. The strong execution on these two projects further reinforces our confidence that they will continue to perform on the five other investments we have with them.
Investor FAQ: How did this 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.
