We’ve invested roughly $15 million in a 312-unit luxury apartment community in North Charleston, SC. The property is located roughly 18 miles north of downtown near Charleston Southern University and several major employers.
Along with this investment, we have also invested roughly $14 million in a newly-built, luxury apartment community located in Greenville, SC with the same sponsor and business plan. At a strategic level, we continue to see opportunities to target attractive yields by financing the acquisition of apartment housing in growing areas.
Business plan
Built in 2017, the property features high-end finishes and amenities, and was 95% occupied when we invested. The project’s sponsor plans to actively manage the property for five to ten years before seeking exit opportunities via sale or refinance.
During the term of investment, we are entitled to our share of monthly cash flow. Upon exit, we are entitled to receive a return equivalent to 11.5% annually, including the cash flow we received during the term of investment, before the sponsor can earn a return for themselves.
Why we invested
- Income-generating asset: The property was 95% occupied at the time of our investment, generating consistent cash flow through rental income.
- Paid first upon exit: Upon sale or refinance, we are entitled to receive a return equivalent to 11.5% 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.
