253G2 1 tm2119418d2_253g2.htm 253G2

 

Filed Pursuant to Rule 253(g)(2)
File No. 024-11212

 

FUNDRISE EAST COAST OPPORTUNISTIC REIT, LLC

 

SUPPLEMENT NO. 19 DATED JUNE 10, 2021
TO THE OFFERING CIRCULAR DATED JULY 15, 2020

 

This document supplements, and should be read in conjunction with, the offering circular of Fundrise East Coast Opportunistic REIT, LLC (the “Company”, “we”, “our” or “us”), dated July 15, 2020 and filed by us with the Securities and Exchange Commission (the “Commission”) on July 15, 2020 (the “Offering Circular”). Unless otherwise defined in this supplement, capitalized terms used in this supplement shall have the same meanings as set forth in the Offering Circular.

 

The purpose of this supplement is to disclose:

 

·Asset acquisition.

 

Asset Acquisition

 

Controlled Subsidiary Investment - 7980 Tar Bay Controlled Subsidiary

 

On June 4, 2021, we directly acquired ownership of a “majority-owned subsidiary” (the “7980 Tar Bay Controlled Subsidiary”) for an initial purchase price of approximately $28,007,767 which is the initial stated value of our equity interest in the 7980 Tar Bay Controlled Subsidiary (the “7980 Tar Bay East Coast Opportunistic REIT Investment”). Fundrise Real Estate Interval Fund, LLC acquired ownership of the remaining equity interest in the new investment round in the 7980 Tar Bay Controlled Subsidiary for an initial purchase price of approximately $7,001,942 (the “7980 Tar Bay Interval Fund Investment” and, together with the 7980 Tar Bay East Coast Opportunistic REIT Investment, the “7980 Tar Bay Investment”). The 7980 Tar Bay Controlled Subsidiary used the proceeds of the 7980 Tar Bay Investment to acquire a fully leased industrial building containing approximately 203,615 square feet of net rentable area on an approximately 9.58-acre site located at 7980 Tar Bay Drive, Jessup, MD 20794 (the “7980 Tar Bay Property”). The initial 7980 Tar Bay East Coast Opportunistic REIT Investment was funded with proceeds from our Offering, and the closing of the initial 7980 Tar Bay East Coast Opportunistic REIT Investment and the 7980 Tar Bay Interval Fund Investment occurred concurrently.

 

The 7980 Tar Bay Controlled Subsidiary is managed by us.

 

Pursuant to the agreements governing the 7980 Tar Bay East Coast Opportunistic REIT Investment (the “7980 Tar Bay Operative Agreements”), we have full authority for the management of the 7980 Tar Bay Controlled Subsidiary, including the 7980 Tar Bay Property. In addition, an affiliate of our sponsor earned an acquisition fee of approximately 1.0% of the total 7980 Tar Bay Property purchase price, paid directly by the 7980 Tar Bay Controlled Subsidiary.

 

The total purchase price for the 7980 Tar Bay Property was approximately $34,218,000, or approximately $168 per rentable square foot. We anticipate soft costs and fees of approximately $791,708 for the closing of the acquisition, bringing the total projected project cost for the 7980 Tar Bay Property to approximately $35,009,708.

 

The 7980 Tar Bay Property was delivered in 1990 and renovated in 2020. It was 100% leased to World Depot, Inc. for a 5 year term at acquisition; therefore we have not budgeted any material improvements or lease-up costs. No financing was used for the acquisition of the 7980 Tar Bay Property; however, financing may be pursued at a later date.

 

The 7980 Tar Bay Property is located on approximately 9.58 acres of improved land in the 20794 zip code of Jessup, MD, in Howard County. The 7980 Tar Bay Property is approximately 15 miles from Baltimore, MD and 25 miles from Washington, D.C. The 7980 Tar Bay Property is located less than one mile from I-95 and less than two miles from I-295, offering proximity to the regional infrastructure of the Mid-Atlantic.

 

 

 

 

The following table contains underwriting assumptions for the 7980 Tar Bay Property. Assumptions are presented at the asset level. All of the values in the table below are assumptions that we believe to be reasonable; however, there can be no guarantee that such results will be achieved.

 

Asset Name  Projected
Average
Annual
Rent
Growth
   Projected
Exit Cap
Rate
   Projected
Hold
Period
7980 Tar Bay   2.5%   4.50%  6 years

 

Please note that past performance is not indicative of future results, and these underwriting assumptions may not reflect actual performance. Any assumptions on the performance of any of our assets may not prove to be accurate. Investing in Fundrise East Coast Opportunistic REIT, LLC is an inherently risky investment that may result in total or partial loss of investment to investors.

 

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.