In August 2017, we invested $6 million in the construction of the Capital Club Apartments, a 312-unit apartment community in Indian Land, SC, a suburb of Charlotte.
After some initial delays due to a longer than expected permitting process and a period of heavy rain, work has progressed according to the revised development timeline. Today, we’re pleased to share that construction at the property is expected to wrap up this fall, and the sponsor has begun to market the finished apartments for lease.
When completed, the community will offer a combination of 1, 2, and 3 bedroom apartments, townhomes, and direct-entry apartments. We believe that the rental townhomes and direct-entry units could prove to be particularly attractive to those who are seeking an additional level of social distancing, but still want the conveniences associated with renting an apartment.
As is typical of our investments in construction, we structured this investment like debt. This means that we are entitled to earn a fixed rate of return each month for as long as it takes to finish the project. Though we always prefer to see construction proceed on schedule, investments like this one are designed to accommodate timeline extensions without negatively impacting our returns.
Investor FAQ: How does this project impact your portfolio?
As construction proceeds, our investment will continue to earn an annualized return of roughly 12%, which supports dividends for the East Coast eREIT. At the same time, the successful completion of each construction milestone reduces the overall risk of the project.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
