In May 2018, we invested $5 million in the construction of Vue at Quarter, a 271-unit apartment building in the Upper Westside of Atlanta. Though construction encountered several delays due first to extreme, inclement weather and later due to complications caused by the COVID-19 pandemic, progress resumed in mid-2020 and has continued steadily since.
Today, we’re pleased to report that construction is now complete at the property, and the project’s sponsor has begun focusing on marketing and leasing the apartments.
To date, roughly 25% of the units are occupied and an additional 10% of the units have been leased to new tenants. As with any investment in new construction, obtaining certificates of occupancy and signed leases are major milestones on the journey to a fully leased, stabilized property, and they represent substantial reductions in the risk to our investment. Once the property is fully leased, the project’s sponsor plans to either secure long-term financing or sell the property and 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, 10.5% 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 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.
