In June 2019, we partnered with an experienced sponsor to acquire Laurel Heights, a 440-unit apartment community in Fort Worth, Texas. Our business plan involves making extensive renovations across the entire community, before actively managing the property for several years, when we would then seek opportunities for an exit via sale or refinancing.
Today, we’re pleased to report that the renovations have been progressing smoothly, with completion expected by the end of this month. The improved units now include upgraded appliances throughout, brand new fixtures, and refinished surfaces, while the community fitness center has benefitted from fresh paint and new carpeting.
As a result of these upgrades, we’ve been able to increase monthly rental income by up to $115 per unit so far. Our partner on this deal has been able to execute these renovations at a remarkably fast pace, requiring only months where changes of this kind can often take a year or more. We expect the increase in rental income will also lead to an increase in the overall property value over time.
Investor FAQ: How does this project impact your portfolio?
This investment is structured as equity, i.e. we are the owners of the property and entitled to our share of rental income as well as any future increase in the value of the property. As an investor, you can expect to see this impact your return in two ways. Any additional rental income would contribute to quarterly dividends, while any increase in the property value would be captured in adjustments to the Growth eREIT III’s net asset value (NAV) per share.
As always, don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
