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 November 2018, we invested roughly $7.5 million in the construction of a 316-unit apartment community in Pooler, GA, about 20 minutes northwest of downtown Savannah.
Construction began shortly after we made our investment, and despite the impacts of COVID the project’s sponsor hit all their major construction milestones on time, completing construction and securing certificates of occupancy in mid-2020. Just eight months later, the property achieved stabilization with roughly 96% of the units occupied.
Today we’re pleased to report that the project’s sponsor has successfully sold the apartment community, and paid back our investment in full. We earned an annualized return of approximately 15.5% over the term of our investment1 — exceeding our initial projection of 12%, because the project’s sponsor agreed to pay interest on the maximum principal balance on day one, even though they drew down the full amount over time as construction progressed.
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 II.
This investment is part of our broader Fixed Income strategy, which has historically consisted primarily of short to medium-term loans or financing of new development. While we are actively evaluating the most attractive strategies to deploy into new income-generating investments in the current, historically low interest rate environment, it is reasonable to expect that yields on private real estate investments in the near term would generally be lower than they have been in the past (along with most other asset classes).
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
