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 March 2020, we invested roughly $9.5 million to provide a loan for the acquisition of two buildings on a roughly 2-acre property in the West Midtown neighborhood of Atlanta, with plans to redevelop the site into a pair of new apartment towers containing approximately 500 units.
Following our acquisition, the project’s sponsor was successful in rezoning the site for high density mixed-used, allowing for up to 450 rental units and two commercial towers for hotel, condominium, or other commercial uses.
Today, we’re pleased to share that the project’s sponsor has refinanced the property with a bank loan 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 8.1% over the life of the investment.¹
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 Income eREIT V and then for the Income Interval Fund.
As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.
