In December 2020, we acquired Amber Pines at Fosters Ridge, a 124-unit single-family rental home community in Conroe, Texas, for a purchase price of $32.3 million.

As with our other equity investments into stabilized properties, our goal with this investment is to earn consistent cash flow from rental income (at the time of our acquisition, the property was roughly 98% occupied), and eventually sell the property for more than we spent on the acquisition.

Outstanding performance: 100% of units leased, 100% in rent collections

We’re thrilled to share that over the past two months, May and June 2021, the rental community has delivered outstanding performance, achieving 100% units leased and 100% rent collections.

While the property was already stabilized at the time of our acquisition, we view the early performance of this investment as further reinforcing our affordably-priced Sunbelt apartment / rental housing thesis. We expect that the long-term trend of individuals moving out of expensive gateway cities toward locations that offer lower living costs and more agreeable climates, which was accelerated by the COVID-19 pandemic, will continue to drive demand for well-priced, well-located real estate, and support steady returns for disciplined investors. Amber Pines at Fosters Ridge is, we believe, a strong example of this trend in action.

Growth drives attractive financing terms

Our original investment was an all-cash transaction, in which we took direct and sole ownership of the entire community, with plans to obtain senior financing and then hold it over the long term. We recently received financing for the property via a one-year, $17.5 million senior loan, which frees up our equity capital to deploy into other investment opportunities, increasing both expected returns and diversification.

Investor FAQ: How does this project impact your portfolio?

This investment is structured as equity, i.e. we are the owners of the property and entitled to our share of rental income as well as any profits from its eventual sale. Rental income it produces over the duration of our investment will contribute to quarterly dividends, while increases to the property value will be captured in adjustments to the Growth eREIT’s NAV per share.

As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.