Every EGCM portfolio aims to diversify through a wide range of properties. Here's an example of one deal that strengthened investors' portfolios.
Investing in real estate has always been considered one of the most lucrative forms of investment. With the recent success of the Austin-area apartment development, the benefits of investing in well-priced and well-located properties in growing areas have become even clearer. The project generated an annualized return of roughly 15%, providing quarterly dividends for Growth eREIT investors.
In May 2019, a $9 million investment was made in the construction of the Quest apartment homes, a 333-unit apartment community located in a major suburb of Austin. Despite the broader economic uncertainty brought by global inflation, the Ukraine war, and US-China tensions, early leasing efforts at the property were promising. Just two months after completing construction, the property was already 38% occupied.
After completing construction in the fall of last year, the project's sponsor shifted focus to lease up the newly-built property. Despite the challenging economic conditions, the success of the project was not only in the rapid leasing of units but also in the successful sale of the property, which allowed for full repayment of the investment. Per the terms of the preferred structure investment (similar to debt), an annualized return of 15% was earned over the life of the investment.
The real estate industry continues to experience a K-shaped recovery, where some asset classes, including suburban apartments in the Sunbelt, are seeing increased demand as well as improved financing due to considerable interest rates. This success further reinforces the conviction around similar investments in the portfolio, providing an optimistic outlook for the future.
Investors may be wondering how this project will impact their portfolio. This investment was structured like debt, where the project's sponsor paid a fixed rate of return before earning a return for themselves. This structure provided a cushion against losses and generated regular income, supporting quarterly dividends for the growth eREIT.
All updates on this asset
New acquisition: Mixed-use project in fast-growing Austin area May 9, 2019
Construction underway on mixed-use project near Austin May 6, 2020
New apartments near Austin begin leasing while construction wraps up Aug 13, 2022
Austin-area apartment development investment pays back successfully Mar 24, 2023
The benefits of investing in real estate are clear, particularly in growing areas such as the Austin suburbs. Well-priced and well-located properties can provide a stable and profitable source of income, even in challenging economic conditions. As the real estate industry continues to recover, it is likely that demand for similar investments will increase, providing additional opportunities for savvy investors.
EGCM is a Real Estate-based hedge fund service, offering investors an opportunity to invest in a diversified portfolio of real estate assets. With a track record of delivering solid returns, EGCM provides a hassle-free investment experience that eliminates the need for individual real estate analysis and management. With our team of experienced professionals and a focus on risk management, EGCM provides a secure and profitable investment solution for those seeking exposure to the real estate market. Join us today and start reaping the benefits of real estate investing.
My name is Milosz Sieracki and thank you for checking out my site, I have been involved in my own business in Poland for several years, as well as in the broader cryptocurrency industry, real estate and stock market, self-development and building my passive income.
I'm the official promotor of EGCM.