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 June 2019, we invested roughly $6.5 million to provide a loan for the acquisition of an 198,000 square foot (4.5 acre) property in the El Sereno neighborhood of Los Angeles as the future site of 42 homes.
Following our acquisition, the sponsor’s business plan involved obtaining the necessary entitlements and permits to build the homes, which they successfully completed in mid-2021.
Today, we’re pleased to share that the project’s sponsor has refinanced the property with a construction loan and paid back our investment in full. Per the terms of our investment, we earned an annualized return of roughly 11% over the life of the investment.
Investor FAQ: How does this project impact your portfolio?
This investment was structured as 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 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.
