In November 2017, we invested in the acquisition of a 10-unit apartment building in Washington, DC. The business plan involved the sponsor holding the asset for several years while market and population growth supported the property’s value.
Recently, the sponsor 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 roughly 16% over the life of the investment.
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 East Coast eREIT.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
