In March 2019, we invested $5.8 million in the construction of Mosby University City, a 309-unit apartment community in Charlotte, North Carolina.
Today, we’re pleased to report that construction is now complete at the property, and all four residential buildings have received certificates of occupancy. 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 construction on the first building completed in the fall of last year, the project’s sponsor began focusing on marketing and leasing the apartments. To date, leasing efforts at the property have been strong: Roughly 50% of the units are occupied and an additional 10% of the units have been leased to new tenants.
As the apartments are leased up and stabilized, the project’s sponsor intends to sell the property to pay back our investment.
Investor FAQ: How does this project impact your portfolio?
This investment is structured like debt, where we are entitled to a fixed rate of return — in this case, 11% annually — before the project's sponsor can earn a return for themselves, and their equity provides us with a cushion against losses. Throughout the term of the investment, the regular income it generates supports quarterly dividends for the Growth eREIT II.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
