In November 2018, we invested roughly $7.5 million in the construction of Mosby Lakeside, a 316-unit apartment community in Pooler, GA, just outside Savannah.
Today, we’re pleased to share that construction is now complete at the property. The project’s sponsor hit all of their major milestones to date, and delivered the project according to the initial timeline. Note that this is exceptional, particularly given the onset of the pandemic.
After the first residential building received a certificate of occupancy earlier this year, the project’s sponsor began focusing on marketing and leasing the apartments. Despite the broader economic uncertainty brought about by the pandemic, leasing efforts at this property have made strong progress so far: Roughly 54% of the units have been leased, with rents in line with or slightly above underwritten projections.
Once the property is fully leased, the project’s sponsor plans to secure long-term financing and pay back our investment.
Like our other investments in apartment communities in Sunbelt cities, we view the performance of this investment, both generally and through the current climate of economic uncertainty, as reinforcement of our conviction that affordable real estate in growing areas is always in demand.
Investor FAQ: How does this project impact your portfolio?
While the project’s sponsor continues to lease up and manage the property, our investment will continue to earn an annualized return of 12%, which supports dividends for the Income eREIT II. 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.
