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 5, 2021

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

FUNDRISE BALANCED EREIT II, LLC

(Exact name of registrant as specified in its charter)

Delaware	84-4465115
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

11 Dupont Circle NW, 9th Floor, Washington, DC	20036
(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

Williamson Overlook Controlled Subsidiary - Georgetown, TX

On March 5, 2021, we directly acquired ownership of a “majority-owned subsidiary” (the “Williamson Overlook Controlled Subsidiary”) for an initial purchase price of approximately $2,500,000, which is the initial stated value of our equity interest in a new investment round in the Williamson Overlook Controlled Subsidiary (the “Williamson Overlook Balanced II eREIT Investment”). Fundrise Real Estate Interval Fund, LLC acquired ownership of the remaining equity interest in the new investment round in the Williamson Overlook Controlled Subsidiary, for an initial purchase price of approximately $22,500,000 (the “Williamson Overlook Interval Fund Investment” and, together with the Williamson Overlook Balanced II eREIT Investment, the “Williamson Overlook Investment”). The Williamson Overlook Controlled Subsidiary used the proceeds to acquire a stabilized garden style multifamily property totaling 270 units located in Georgetown, TX (the “Williamson Overlook Property”). The initial Williamson Overlook Balanced II eREIT Investment was funded with proceeds from our Offering, and the closing of the initial Williamson Overlook Balanced II eREIT Investment and the Williamson Overlook Property occurred concurrently.

The Williamson Overlook Controlled Subsidiary is managed by us.

Pursuant to the agreements governing the Williamson Overlook Balanced II eREIT Investment (the “Williamson Overlook Operative Agreements”), we have authority for the management of the Williamson Overlook Controlled Subsidiary, including the Williamson Overlook Property. In addition, an affiliate of our sponsor earned an acquisition fee of approximately 1.0% of the purchase price of the Williamson Overlook Property, paid directly by the Williamson Overlook Controlled Subsidiary.

The total purchase price for the Williamson Overlook Property was approximately $50,000,000, an average of approximately $185,000 per unit. We anticipate additional hard costs of approximately $100,000 for rebranding and miscellaneous minor capital expenditures, as well as additional soft costs and financing costs of approximately $2,400,000 bringing the total projected project cost for the Williamson Overlook Property to approximately $52,500,000. To finance the acquisition of the Williamson Overlook Property, a $27,500,000 senior loan with a one (1) year term at a SOFR + 1.50% interest rate with one year interest only was secured. 

The Williamson Overlook Property was built in 2019-2020 and has a mix of unit types and floorplans, ranging from 528 square foot studios to 1,362 square foot 3-bedroom/2-bath apartments. Due to the new construction, it is not anticipated that material hard or soft costs will be incurred in the near term. Professional third party property management will be installed to manage the Williamson Overlook Property. 

Georgetown, TX is located approximately 30 miles north of Austin, TX. Spurred by the overall Austin MSA growth, population growth in Georgetown has been strong and has created demand for apartments in the area. The Georgetown submarket within the larger Austin MSA represents an attractive combination of population growth and job growth with solid multifamily fundamentals. 

The following table contains underwriting assumptions for the Williamson Overlook 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	Stabilized Economic Vacancy			Average Annual Rent Growth			Average Annual Expense Growth			Exit Cap Rate			Hold Period
Williamson Overlook Property		5.5	%		2.5	%		2.75	%		4.75	%		10 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 Balanced eREIT II, 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.

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 the most recently qualified Offering Statement on Form 1-A 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 BALANCED EREIT II, LLC
By:	Fundrise Advisors, LLC
Its:	Manager
By:	/s/ Bjorn J. Hall
Name:	Bjorn J. Hall
Title:	General Counsel
Date:	March 11, 2021