Behind our investment strategy: Capturing demand as multifamily supply constraints tighten through 2027
Portfolio Update: Preferred Equity Investment in Sarasota Metro Area
Sarasota development
The Fundrise Income Real Estate Fund holds a preferred equity investment in a 217-unit multifamily development in Parrish, Florida, within the Sarasota MSA. This investment offers a compelling 12.75%¹ annual gross return, continuing to reinforce the Income Real Estate Fund's track record of delivering stable, attractive income-oriented returns that's built to weather market ups and downs.
Investment highlights
• Investment type: Preferred equity
• Projected return: 12.75%¹ gross annual return
• Location: Parrish, FL (Sarasota MSA)
Investment overview
This premium 217-unit garden-style community will feature multiple three-story and three four-story buildings with enclosed, air-conditioned corridors, a standout feature in this submarket. Units include open-concept floor plans, quartz countertops, stainless steel appliances, and large terraces. Community amenities feature ample garage parking with direct building access, resort-style saltwater pool with poolside cabanas, fitness center, co-working space, and dog park.
Market opportunity
The property sits in one of Florida's fastest-growing corridors, where the population within three miles has surged 44% since 2010 and is projected to grow roughly another 15% by 2029. The median household income within a 5-mile radius outpaces the broader county's median income, indicating strong rental demand. Located only 3 miles from I-75, residents can easily reach downtown Sarasota and St. Petersburg, while also benefiting from immediate access to established retail including Creekside Commons, Publix, and Ellenton Premium Outlets.
Why this matters now
In an environment marked by increased uncertainty and heightened market volatility, investors are increasingly searching for reliable sources of income. That's where fixed-return investments like this stand out. With a 12.75%¹ gross annual return and a preferred equity structure, this opportunity combines yield with downside protection.
Unlike traditional income products that fluctuate with interest rates or market sentiment, preferred equity investments in growing multifamily markets are backed by real assets. As part of our broader strategy, this investment helps support the Fund's 7.87%² annualized distribution rate, providing stability in an otherwise uncertain landscape.
We continue to focus on building a resilient, well-diversified portfolio designed to generate consistent income, even as public markets remain unpredictable.
If you have any questions, feel free to reach out to our Investor Relations team at [email protected].
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¹ This solely represents a fixed rate of preferred return due to the Fundrise Income Real Estate Fund under the terms of its investment agreement(s) and does not reflect either a gross or net return that an investor in the Fundrise Income Real Estate Fund may expect to receive. Due to the uncertainty of other factors that will ultimately determine the return to any investor (such as leverage, cash drag, and other financings), the performance of this asset to the investor is currently unknowable and may ultimately be lower or higher than the stated rate.
² As of May 24, 2026. The current month's distribution is annualized and divided by the prior month's net asset value per share. Distribution rate is not a total return and is not guaranteed; distributions may be paid from income, gains, and/or return of capital. The total return for the year ended December 31, 2025 was 8%, including both distributions and appreciation.
Disclosure: An investor in the Fundrise Income Real Estate Fund should consider the investment objectives, risks, charges, and expenses carefully before investing. The Fund's prospectus contains this and other information and may be obtained here. Investors should read the prospectus carefully before investing.
The Fundrise Income Real Estate Fund seeks to provide investors with liquidity through quarterly offers to repurchase a limited amount of The Fundrise Income Real Estate Fund’s Shares (at least 5%), pursuant to Rule 23c-3 under the Investment Company Act of 1940. For the latest available repurchase notice, please click here or see the “Literature” section of fundriseincomerealestatefund.com. Pursuant to Rule 30e-1 under the Investment Company Act of 1940, please click here or see the “Literature” section of fundriseincomerealestatefund.com for the Income Fund’s Semi-Annual Report.
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