Important note: The realized return on an individual project may vary significantly from your portfolio-level return as an investor. To learn more about why this may be the case, see the “How did this project impact your portfolio?” section.
In February 2021, we provided a $33.5 million loan for the acquisition of an approximately 667,000 square foot (15.3 acre) property in San Juan Capistrano, California.
The borrower initially planned to obtain permits for the construction of an industrial building on the property, before paying back our investment via a sale or refinance. However, due to strong demand for industrial properties in the area, they successfully sold the property to a developer prior to receiving construction permits.
Today, we’re pleased to report that the borrower has paid back our investment in full, which generated an annualized return of approximately 8.5% over the roughly three-month duration, per the terms of our loan agreement.
Investor FAQ: How does this project impact your portfolio?
Throughout the term of this investment, the regular income it generated supported quarterly dividends for the Income eREIT.
This investment is part of our broader Fixed Income strategy, which has historically consisted primarily of short to medium-term loans or similar financing of new development. While we are actively evaluating the most attractive strategies to deploy into new income-generating investments in this environment, it is reasonable to expect that (along with most other asset classes), yields on private real estate investments in the near term would generally be lower than they were in the past.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
