In October 2017, we invested roughly $4.6 million in the construction of Volaris Live Oak Apartments, a 300-unit apartment community in Sarasota, Florida.
After completing construction in the fall of last 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 have been strong, and the property is now roughly 85% occupied.
Recently, Waypoint paid back our investment in full. Per the terms of our preferred structure investment (which is similar to a loan / debt financing), we earned an annualized return of 10% over the life of the investment.
Following the payoff of two similar projects in September of this year, this is our fifth 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 Income eREIT.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
