UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 1-U

CURRENT REPORT

Pursuant Regulation A of the Securities Act of 1933

November 30, 2018

(Date of Report (Date of earliest event reported))

FUNDRISE INCOME EREIT II, LLC

(Exact name of registrant as specified in its charter)

Delaware	61-1775114
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

1601 Connecticut Ave., Suite 300, Washington, DC	20009
(Address of principal executive offices)	(ZIP Code)

(202) 584-0550

(Registrant’s telephone number, including area code)

Common Shares

(Title of each class of securities issued pursuant to Regulation A)

Item 9.                Other Events

Asset Acquisition

Acquisition of Senior Mortgage Loan – Mosby University City, LLC

On November 30, 2018, we acquired from Fundrise Lending, LLC, a wholly-owned subsidiary of our sponsor (“Fundrise Lending”), a first mortgage bridge loan with a maximum principal balance of $4,400,000, (the “Middleburg University City Senior Loan”). The borrower, Mosby University City, LLC, a Delaware limited liability company (“Mosby University City”), used the loan proceeds to acquire an approximately 14 acre parcel of land. Middleburg University City intends to apply for permits to complete construction of a 309-unit, 2, 4 and 5-story, new construction market-rate apartment community located at 7226 North Tryon St in Charlotte, NC (the “Mosby University City Property”).

Mosby University City is managed by Middleburg Real Estate Partners (“Middleburg”). Middleburg is a fully integrated real estate operating company specializing in the acquisition, development, and management of quality apartment communities throughout the Mid-Atlantic and the southeastern United States. Over its lifetime, Middleburg has owned and managed over 34 deals and deployed over $300 million. On the original closing date of the Middleburg University City Senior Loan, Mosby University City was capitalized with approximately $1,482,000 of equity capital from the borrower.

The Middleburg University City Senior Loan bears an interest rate of 11.0% per annum, with an amount equal to 11.0% per annum paid current on a monthly basis through the maturity date, May 31, 2019 (the “Middleburg University City Maturity Date”). Interest will be paid interest-only over the term of the loan. In addition, an affiliate of our Manager earned an origination fee of approximately 2.0% of the Middleburg University City Senior Loan amount, as well as an approximate $30,000 in due diligence fees and third-party reimbursements, paid directly by Mosby University City.

Mosby University City has the ability to extend the Middleburg University City Maturity Date for one, six-month period. To exercise the extension option, all interest must be paid and Mosby University City will be required to pay an extension fee of 0.5% of the funding provided. During the extension period, the interest rate will increase to 12.0%.

Middleburg and a principal of the sponsor have provided customary bad boy carve-out guarantees (collectively, the “Guarantors”).

As of its closing date the Middleburg University City Senior Loan’s loan-to-purchase-price ratio, or the LTPP ratio, was approximately 80.0%. The LTPP ratio is the amount of the Middleburg University City Senior Loan divided by the land purchase price. As of its closing date, the Middleburg University City Senior Loan’s as-is loan-to-value ratio, or the LTV ratio, was approximately 73.2%. The LTV ratio is the amount of the Middleburg University City Senior Loan divided by a February 2018, third-party appraised value of the Mosby University City Property. There can be no assurance that such value is correct.

The Mosby University City Property is located inside the city of Charlotte within Mecklenburg County, approximately 6.8 miles northeast of downtown Charlotte. Generally, the boundaries of the immediate area are University City Boulevard to the north, Old Concord Road to the south and east, West Sugar Creek Road to the west. The site is located adjacent to the LYNX Blue Line light rail extension providing access to downtown Charlotte.

As the Middleburg University City Senior Loan was purchased from Fundrise Lending, an affiliate of our Manager, the Independent Representative, reviewed and approved of the transaction prior to its consummation.

Safe Harbor Statement

This Current Report on Form 1-U contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in our Offering Statement on Form 1-A dated August 22, 2018, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in our periodic filings and prospectus supplements filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

SIGNATURES

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FUNDRISE INCOME EREIT II, LLC
By:	Fundrise Advisors, LLC
Its:	Manager
By:	/s/ Bjorn J. Hall
Name:	Bjorn J. Hall
Title:	General Counsel

Date: December 6, 2018