In November 2017, we invested roughly $5.8 million in the construction of the Estraya Georgetown Apartments, a 270-unit apartment community in Georgetown, Texas, a northern suburb of Austin.
After completing construction earlier this year, the project’s sponsor, Waypoint Residential, shifted focus to lease up the newly-built property. Despite the broader economic uncertainty brought about by the pandemic, leasing efforts at this property have been strong. Just seven months after completing construction, the property is 85% occupied.
We’re pleased to report that Waypoint recently paid back our investment in full. Per the terms of our preferred structure investment (which is similar to debt), we earned an annualized return of 10% over the life of the investment.
Along with the recent payoff of a similar project near Tampa, FL, this is our fourth success story with Waypoint, further strengthening our confidence that they will continue to deliver positive results on the other active investments we have with them.
Like our other investments in apartment communities in Sunbelt cities, we view the performance of this investment, both generally and through the pandemic, as a reinforcement of our conviction that affordable real estate in growing areas is always in demand.
Investor FAQ: How does this project impact your portfolio?
This investment was structured like 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 generated supported quarterly dividends for the Heartland eREIT.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
