1-U 1 tv509336_1u.htm FORM 1-U





Washington, D.C. 20549






Pursuant Regulation A of the Securities Act of 1933



December 17, 2018

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




(Exact name of registrant as specified in its charter)



Delaware 38-4030901
(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 Performance Projections


The following table contains updated performance assumptions and projections for certain real estate equity assets held by us. This disclosure is in addition to previous disclosures made regarding such assets. The projected performance is based on the actual performance of each asset, as of October 31, 2018, plus the following forward-looking assumptions. All of the values in the table below are projections and assumptions that we believe to be reasonable; however, there can be no guarantee that such results will be achieved.


Single Family Rental Portfolio Investment Assumptions


Asset Name

Number of

Assets in






Total Projected

Annual Price







National eFund Single

Family Rental Portfolio

17* 6.9% - 13.1% 3.5% - 6.4% 50% - 55% 35.0% - 37.5%

*Assets included in the National eFund Single Family Rental Portfolio included the following controlled subsidiaries:



Single-Family Home



Location Date of Acquisition Approximate Purchase Price
473 Los Angeles, CA 2/7/18 $443,000
S37 Los Angeles, CA 2/21/18 $427,000
317 Los Angeles, CA 2/21/18 $535,000
S48 Los Angeles, CA 4/3/18 $457,000
E81 Los Angeles, CA 3/30/18 $468,000
W47 Los Angeles, CA 5/15/18 $408,000
E35 Los Angeles, CA 5/15/18 $457,000
E22 Los Angeles, CA 5/18/18 $410,000
C33 Los Angeles, CA 7/2/18 $339,000
W11 Los Angeles, CA 7/9/18 $472,000
E19 Los Angeles, CA 7/24/18 $568,000
E85 Los Angeles, CA 7/31/18 $436,000
W114 Los Angeles, CA 8/10/18 $614,000
P50 Los Angeles, CA 8/20/18 $441,000
E44 Los Angeles, CA 8/28/18 $513,000
C38 Los Angeles, CA 9/5/18 $431,000
M34 Los Angeles, CA 10/22/18 $388,000





Single family rental property purchase prices, acquisition and renovation costs to rent, and rental rates are empirically based on actuals, derived from the performance of subject property units that have been purchased and leased to date. Projection ranges are based on the range of inputs provided above, and assume minimum debt service coverage ratio (DSCR) of at least 1.20 with a 30-year amortization rate and an average vacancy rate of 4.5%, projected average annual rent growth of 3% per annum, and an approximate 10 year hold period. We anticipate operating expense ratios across the National eFund Single Family Rental Portfolio range from 35.0% to 37.5%. We expect that this percentage will decrease as we increase the number of assets in our rental portfolio and achieve economies of scale. In the conservative “base-case” projection, average annual price appreciation rates are discounted by approximately half, lowering the annual growth rates by about 50% of the 18-year Los Angeles, CA metro-wide and neighborhood-specific appreciation rates according to NeighborhoodScout as of Q2 2018. The historical appreciation rates data from NeighborhoodScout is the latest neighborhood statistics available as of October 31, 2018 from several leading government sources, including the U.S. Bureau of the Census, the U.S. Department of Justice, the National Center for Education Statistics, and the U.S. Geological Service, among others. The high-end of the projections are derived portfolio assumptions of appreciation rates from NeighborhoodScout's historical appreciation rates for the Los Angeles, CA sub-markets where all properties are located. The projected return range is primarily driven by the ranges provided varying the annual property price growth, rent increases, leverage and interest rates, operating expense ratio, and hold period. However, there can be no assurance that any of the foregoing assumptions will prove to be accurate and are provided for informational purposes only.


Single Family Home Renovation and Sale Investment Assumptions


Asset Name


Return on


Total Projected



Projected Gross Exit


B15 - Controlled Subsidiary 6.6% to 13.4% $10,000 - $20,000 $375,000 - $400,000


Property purchase prices and acquisition costs used to determine projected returns are empirically derived based on actual amounts for each property previously filed with the SEC. Projection ranges are generally based on a 9 to 12 month hold period with no leverage at the property level. Exit price projections are based on comparable houses recently sold of similar size and finish level in the surrounding area. Projected annual returns have been reduced by the anticipated profit sharing with third-party, unaffiliated development partners, at a rate of 25% of the profits over a 10% preferred return. The projected annual return range is primarily driven by the ranges provided varying the acquisition costs, total projected development costs, and projected exit price.  However, there can be no assurance that any of the foregoing assumptions will prove to be accurate and are provided for informational purposes only.


Please note that past performance is not indicative of future results, and these asset performance projections may not reflect actual future performance. Any projections on the future returns of any of our assets may not prove to be accurate and are highly dependent on the assumptions described above. Investing in Fundrise National For-Sale Housing eFund, LLC is an inherently risky investment that may result in total or partial loss of investment to investors.


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 October 19, 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.







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:  December 17, 2018