In May 2018, we invested roughly $12.7 million in the construction of a 29-unit condo building in the Koreatown area of Los Angeles. Today, we are pleased to report that progress has continued steadily since our last video update in October 2019. As you can see in the new footage, the building is now fully framed, electrical work has begun, and the roof installation is complete.
Though the project experienced a delay in obtaining necessary electrical power, it’s now making steady progress. We expect construction to wrap up in May or June of this year. Upon completion, the developer plans to sell the condos and use the proceeds to pay back our investment.
Investor FAQ: How does this project impact your portfolio?
Our investment in this project is structured as debt, where the borrower 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.
While construction moves along, our investment continues to earn an annualized return of roughly 9.3%, which supports dividends for the Income eREIT. At the same time, the successful completion of each construction milestone reduces the overall risk of the project.
We look forward to providing further updates as structural work wraps up and the interior begins to take shape. As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
