UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 1-U

CURRENT REPORT

Pursuant Regulation A of the Securities Act of 1933

March 19, 2019

(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 – 5625 Case, LLC

On March 19, 2019, 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 $1,662,000, (the “5625 Case Senior Loan”). The Borrower, 5625 Case, LLC, a California limited liability company (“5625 Case”), used the loan proceeds to acquire approximately 16,000 square feet of land located at 5625-5631 Case Avenue, North Hollywood, CA 91601(the “5625 Case Property”). The 5625 Case Property is composed of three parcels, all of which are unimproved. 5625 Case plans to proceed through entitlement and permitting in order to develop approximately 10 single-family homes.

5625 Case is managed by the principal of Breakform Realty Ventures, Ridaa Murad (the “Sponsor”). Since inception of Breakform, the Sponsor has invested in over $100 million of real estate and currently has over $47 million of assets under management.

On the original closing date of the 5625 Case Senior Loan, 5625 Case was capitalized with approximately $754,900 of equity capital from the Sponsor.

The 5625 Case Senior Loan bears an interest rate of 9.75% per annum, with an amount equal to 9.75% per annum paid current on a monthly basis through the maturity date, September 19, 2020 (the “5625 Case 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 5625 Case Senior Loan amount, paid directly by 5625 Case.

5625 Case has the ability to extend the 5625 Case Maturity Date for one, six-month period. To exercise the extension option, all interest must be paid and 5625 Case will be required to pay an extension fee of 1.0% of the funding provided. During the extension period, the interest rate will increase to 10.75%.

The Sponsor has provided customary springing and carve-out guarantees.

As of its closing date, the 5625 Case Senior Loan’s loan-to-purchase-price ratio, or the LTPP ratio, was approximately 79.1%. The LTPP ratio is the amount of the 5625 Case Senior Loan divided by the land purchase price. As of its closing date, the 5625 Case Senior Loan’s loan-to-value ratio, or the LTV ratio, was approximately 87.5%. The LTV ratio is the amount of the 5625 Case Senior Loan divided by the March 2019, third-party appraised value of the 5625 Case Property. There can be no assurance that such value is correct.

The 5625 Case Property is located in North Hollywood, CA. The North Hollywood submarket has been growing as a more affordable alternative to nearer-in Los Angeles. The 5625 Case Property is expected to benefit from the primarily older inventory in this neighborhood.

As the 5625 Case 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:     March 26, 2019