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 May 2019, we invested $3.4 million in the acquisition and repositioning of The Lennox, a 100-unit boutique apartment community in Las Vegas, Nevada.
Prior to our investment, the property had struggled with occupancy despite its recent 2015 construction and attractive, boutique feel. The project’s sponsor acquired the property with plans to improve the community’s leasing center, gym, and pool, and bring in a professional management firm, with the goal of boosting occupancy and rental income earned on the property.
Today, we’re pleased to share that our sponsor has successfully sold the property and paid back our investment in full. Per the terms of our preferred structure investment (which is similar to debt), we earned an annualized return of roughly 8% over the life of the investment.
Investor FAQ: How does this project impact your portfolio?
This investment was structured like debt, where the project’s sponsor must pay us a fixed rate of return before they can earn a return for themselves, and their equity provides us with a cushion against losses. Throughout the term of this investment, the regular income it generated supported quarterly dividends for the Heartland eREIT.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
