Completed
Build-for-rent
Los Angeles, CA
Overview
Asset class
Private credit
Asset type
Build-for-rent
Strategy
Fixed income
Funds
Income Real Estate Fund
Updates
New acquisition
May 21, 2018
The borrower plans to break ground on the site in the coming months, with completion of major construction expected in early 2020, and the homes being put up for sale shortly thereafter.
New acquisition: 29-unit condo development in Koreatown
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Progress update
July 19, 2018
Just a couple of months after we invested, the lot has been cleared and crews are already beginning to move building materials onto the job site.
Drone video: Site work on 29 new condos in LA
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Progress update
October 18, 2019
The building is close to topping out less than 18 months after we invested.
Video update: Drone footage captures progress on new condos in LA
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Progress update
March 6, 2020
The building’s roof is now installed, and the setup of mechanical systems has begun.
Drone video: Construction update on 29 new condos in LA
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Exit
December 8, 2020
The project generated an annualized return of roughly 9.3%, supporting consistent dividends for Income eREIT investors.
Exit update: LA condo construction loan pays back successfully
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Location
Los Angeles, CA
Asset type
Build-for-rent
Build-for-Rent (BFR) homes are newly constructed properties designed specifically for renting, typically built in communities of 50 to 200 units, and operate similar to an apartment building. As home ownership costs soar and the demand for larger living spaces increases, BFR stands out as the next major asset class in real estate as it capitalizes on the growing need for single-family rentals (SFRs). Our BFR strategy involves bulk purchasing directly from builders and managing the rental process, allowing for superior pricing and returns compared to acquiring individual, already-completed homes.
Our strategy
Fixed income
Provide real estate backed loans or similar financing
- Expected variability of return: Low
- Timing of expected return: Typically begin earning interest immediately
- Primary expected source of returns: Interest income
This section is intended to provide a general overview of the Fixed income strategy for educational purposes only, and is not meant to be representative of the specific details of any individual investment. All investments involve risk; there are no guarantees of any returns.