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 2016, we invested roughly $7.7 million in the acquisition of the Enclave at Lake Ellenor, a 296-unit stabilized apartment community in Orlando, Florida.
Our initial business plan for the property included renovations to modernize all of the community’s units and adding community-wide amenities, such as two resort-style pools and a dog park. Over the course of the renovations, we invested a total of $11.1 million to fund our share of renovation costs. These renovations successfully wrapped up in 2017 resulting in a 39% increase in the value of the property according to an appraisal.
Based on the success we saw renovating the existing units, we then extended our business plan in 2020 to expand the community by building 24 brand new units on a vacant section of the property.
Today, we’re pleased to share the successful sale of the property. Between the rental income we received during the course of the investment and the profits from the sale, we achieved an annualized return of roughly 36.7% over the five years we held the investment.¹
Investor FAQ: How does this project impact your portfolio?
This investment was structured as equity, i.e. we were part owners of the property along with our partner, and entitled to our share of rental income as well as any profits from the sale.
Since acquisition, the rental income earned has contributed to quarterly dividends, while the increased value of the property has been captured in prior quarters’ adjustments to the East Coast eREIT’s net asset value (NAV) per share.
Note that investors who joined the platform more recently would likely not see as much of an impact to their returns from this investment, since most of the returns were realized before they joined the platform.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
