1-U 1 tv479641_1u.htm 1-U





Washington, D.C. 20549







Pursuant Regulation A of the Securities Act of 1933



November 9, 2017

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




(Exact name of registrant as specified in its charter)



Delaware 61-1775059
(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 Acquisitions


Acquisition of Controlled Subsidiary Investment – Fundrise eFUND – NPSC Westmoreland - Controlled Subsidiary


On November 9, 2017, we directly acquired ownership of a “majority-owned subsidiary” (the “Fundrise eFUND – NPSC WESTMORELAND - Controlled Subsidiary”), for an initial purchase price of $1,040,103 which is the initial stated value of our equity interest in the Fundrise eFUND – NPSC WESTMORELAND - Controlled Subsidiary (the “NPSC WESTMORELAND Investment”). The Fundrise eFUND – NPSC WESTMORELAND - Controlled Subsidiary used the proceeds to acquire an existing six bedrooms, 2 bathroom, 2,440 square foot home on a 7,202 square foot lot in the Mid Los Angeles neighborhood of North East Los Angeles (the “NPSC WESTMORELAND Property”). The closing of both the NPSC WESTMORELAND Investment and the NPSC WESTMORELAND Property occurred concurrently.  


The NPSC WESTMORELAND Investment was fully funded with proceeds from our Offering.


The Fundrise eFUND – NPSC WESTMORELAND - Controlled Subsidiary is managed by us and it is anticipated that the controlled subsidiary will transfer or turn into a joint venture in the future.


Pursuant to the agreements governing the NPSC WESTMORELAND Investment (the “NPSC WESTMORELAND Operative Agreements”), we have full authority for the management of the Fundrise eFUND – NPSC WESTMORELAND - Controlled Subsidiary, including the NPSC WESTMORELAND Property. In addition, Fundrise Lending, LLC, an affiliate of our Manager and a wholly-owned subsidiary of our sponsor, earned an origination fee of approximately 2.0% of the NPSC WESTMORELAND Investment, paid directly by the Fundrise eFUND – NPSC WESTMORELAND - Controlled Subsidiary. We anticipate retaining these control rights if the controlled subsidiary is contributed or turned into a joint venture structure in the future.


In addition to the purchase price of $1,040,103, we anticipate additional costs of approximately $305,000 to complete entitlements approvals yielding five (5) small lot homes. The business plan then entails selling the property upon completion of entitlements. There can be no assurance that the anticipated completion cost will be achieved.


The NPSC WESTMORELAND Investment is anticipated to be held for 24 to 36, including sale upon completion of entitlements. We believe the property will be able to achieve up to a 12% unleveraged IRR upon sale based on a $350,000 per entitled lot sellout price. However, there can be no assurance that such value will be achieved.


The NPSC WESTMORELAND Investment thesis is based primarily upon the site’s improving location, physical barriers to entry, basis and market sales for entitled small lot land in the immediate submarket. The Mid LA neighborhood is considered to be rapidly gentrifying, as first-time home buyers are priced out of more established neighborhoods.


We believe these strong market fundamentals will continue to make the submarket a desirable investment location.


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 May 10, 2017, 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.







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.


    By: Fundrise Advisors, LLC  
    Its: Manager  
    By: /s/ Bjorn J. Hall  
    Name: Bjorn J. Hall  
    Title: General Counsel  
Date: November 15, 2017