In May 2017, we invested in the construction of 11 luxury homes in Hollywood, Los Angeles. After completing construction earlier this year, the brand new homes were listed for sale. If you haven't already seen them, the photos of the finished homes are worth a look — we think the results speak for themselves.
Today, we’re pleased to announce that the borrower has successfully sold six of the eleven homes for an average price of roughly $1.46 million, and used the proceeds to pay back $8.2 million of our principal (roughly 76% of our total investment).
The remaining $2.55 million is entitled to continue earning an annualized return of roughly 7% until it’s paid back, which we expect to occur by the end of this year.
Investor FAQ: How has this project impacted your portfolio?
This investment is structured as 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 has generated has supported quarterly dividends for the Income eREIT.
As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
