1-U 1 current_report.htm

  

  

  

  

  

  

   

   

   

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

   

FORM 1-U

   

CURRENT REPORT PURSUANT TO REGULATION A

   

Date of Report:

April 28, 2026

ARRIVED STR 2, LLC

(Exact name of issuer as specified in its Certificate of Formation)

Delaware

92-1716225

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

   

1700 Westlake Ave North, Suite 200

Seattle, WA 98109

   

(Full mailing address of principal executive offices)

   

(814)-277-4833

   

(Issuer's telephone number)

   

   

   

www.arrived.com

   

(Issuer's website)

 

Arrived Series Pinkshell; Arrived Series Alta; Arrived Series Vita; Arrived Series Preciosa; Arrived Series Seafoam; Arrived Series Tiara; Arrived Series Coquina; Arrived Series Sandbar; Arrived Series Knoll; Arrived Series BeatBox; Arrived Series Solano; Arrived Series Byers

 

(Title of each class of securities issued pursuant to Regulation A)

 

ITEM 9. OTHER EVENTS

Net Asset Value as of April 25, 2026

 

As of 8:00 AM Eastern Time, Saturday, April 25, 2026, our net asset value ("NAV") per interest for each series is set in the table below. This NAV per interest shall be effective until updated by us on or about July 25, 2026.

 

Series

 

NAV Per Interest

 

Alta

 

$9.80

 

Beatbox

 

$9.48

 

Byers

 

$12.03

 

Coquina

 

$9.53

 

Knoll

 

$10.06

 

Pinkshell

 

$9.09

 

Preciosa

 

$10.16

 

Sandbar

 

$9.78

 

Seafoam

 

$9.50

 

Solano

 

$9.53

 

Tiara

 

$9.99

 

 

The following sets forth the calculation of each series' NAV per interest:

 

BALANCE SHEET (UNAUDITED) [1]

 

 

 

Alta

 

 

Beatbox

 

 

Byers

 

 

Coquina

 

 

Knoll

 

 

Pinkshell

 

 

Preciosa

ASSETS

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Current assets:

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Cash

$

8,424 

 

$

9,011 

 

$

116,512 

 

$

10,133 

 

$

14,254 

 

$

3,897 

 

$

28,165 

Other receivables

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Prepaid expenses

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Deposits

 

11,398 

 

 

- 

 

 

0 

 

 

475 

 

 

(3,762) 

 

 

- 

 

 

3,683 

Property and equipment, net

 

865,321 

 

 

768,151 

 

 

652,532 

 

 

741,857 

 

 

1,028,671 

 

 

784,039 

 

 

873,608 

Total assets

$

885,002 

 

$

777,162 

 

$

769,044 

 

$

752,465 

 

$

1,039,163 

 

$

787,936 

 

$

905,456 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

LIABILITIES

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Current liabilities:

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Accrued expenses

$

5,123 

 

$

3,998 

 

$

3,744 

 

$

2,569 

 

$

5,000 

 

$

11,899 

 

$

3,692 

Accounts payable

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Due to (from) related parties

 

13,891 

 

 

5,802 

 

 

(4,374) 

 

 

7,581 

 

 

15,064 

 

 

17,540 

 

 

10,649 

Tenant deposits

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Note payable, related party

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Mortgage payables

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Total liabilities

$

113,614 

 

$

16,800 

 

$

(631) 

 

$

38,450 

 

$

51,465 

 

$

81,438 

 

$

14,341 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

MEMBERS' EQUITY (DEFICIT)

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Members' capital

 

963,730 

 

 

946,994 

 

 

836,079 

 

 

866,942 

 

 

1,214,418 

 

 

921,699 

 

 

987,702 

Accumulated deficit

 

(192,343) 

 

 

(186,631) 

 

 

(66,404) 

 

 

(152,927) 

 

 

(226,720) 

 

 

(215,202) 

 

 

(96,587) 

Total members' equity (deficit)

$

771,388 

 

$

760,363 

 

$

769,675 

 

$

714,015 

 

$

987,699 

 

$

706,498 

 

$

891,115 

Total liabilities and members' equity (deficit)

$

885,002 

 

$

777,162 

 

$

769,044 

 

$

752,465 

 

$

1,039,163 

 

$

787,936 

 

$

905,456 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

NET FAIR VALUE OF ASSETS

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

Net asset value with members' equity (without fair value adjustments)

 

771,388 

 

 

760,363 

 

 

769,675 

 

 

714,015 

 

 

987,699 

 

 

706,498 

 

 

891,115 

Net adjustments to fair value

 

306,202 

 

 

253,713 

 

 

715,157 

 

 

249,957 

 

 

442,627 

 

 

286,811 

 

 

326,652 

TOTAL NET ASSETS

$

1,077,589 

 

$

1,014,076 

 

$

1,484,832 

 

$

963,973 

 

$

1,430,326 

 

$

993,308 

 

$

1,217,768 

NET ASSET VALUE PER INTEREST

$

9.80 

 

$

9.48 

 

$

12.03 

 

$

9.53 

 

$

10.06 

 

$

9.09 

 

$

10.16 

 

 

 

Sandbar

 

 

Seafoam

 

 

Solano

 

 

Tiara

ASSETS

 

  

 

 

  

 

 

  

 

 

  

Current assets:

 

  

 

 

  

 

 

  

 

 

  

Cash

$

2,104 

 

$

1,607 

 

$

80,647 

 

$

2,111 

Other receivables

 

- 

 

 

- 

 

 

- 

 

 

- 

Prepaid expenses

 

- 

 

 

- 

 

 

- 

 

 

- 

Deposits

 

- 

 

 

- 

 

 

- 

 

 

300 

Property and equipment, net

 

828,009 

 

 

813,963 

 

 

1,035,171 

 

 

718,937 

Total assets

$

831,856 

 

$

817,300 

 

$

1,115,818 

 

$

721,347 

 

 

  

 

 

  

 

 

  

 

 

  

LIABILITIES

 

  

 

 

  

 

 

  

 

 

  

Current liabilities:

 

  

 

 

  

 

 

  

 

 

  

Accrued expenses

$

7,065 

 

$

8,763 

 

$

3,598 

 

$

3,044 

Accounts payable

 

- 

 

 

- 

 

 

- 

 

 

- 

Due to (from) related parties

 

12,341 

 

 

11,547 

 

 

1,632 

 

 

22,643 

Tenant deposits

 

- 

 

 

- 

 

 

- 

 

 

- 

Note payable, related party

 

- 

 

 

- 

 

 

- 

 

 

- 

Mortgage payables

 

- 

 

 

- 

 

 

- 

 

 

- 

Total liabilities

$

47,406 

 

$

83,210 

 

$

5,230 

 

$

42,887 

 

 

  

 

 

  

 

 

  

 

 

  

MEMBERS' EQUITY (DEFICIT)

 

  

 

 

  

 

 

  

 

 

  

Members' capital

 

957,759 

 

 

946,479 

 

 

1,293,773 

 

 

848,666 

Accumulated deficit

 

(173,309) 

 

 

(212,389) 

 

 

(183,185) 

 

 

(170,206) 

Total members' equity (deficit)

$

784,450 

 

$

734,090 

 

$

1,110,588 

 

$

678,460 

Total liabilities and members' equity (deficit)

$

831,856 

 

$

817,300 

 

$

1,115,818 

 

$

721,347 

 

 

  

 

 

  

 

 

  

 

 

  

NET FAIR VALUE OF ASSETS

 

  

 

 

  

 

 

  

 

 

  

Net asset value with members' equity (without fair value adjustments)

 

784,450 

 

 

734,090 

 

 

1,110,588 

 

 

678,460 

Net adjustments to fair value

 

314,808 

 

 

310,142 

 

 

245,791 

 

 

327,044 

TOTAL NET ASSETS

$

1,099,259 

 

$

1,044,233 

 

$

1,356,379 

 

$

1,005,505 

NET ASSET VALUE PER INTEREST

$

9.78 

 

$

9.50 

 

$

9.53 

 

$

9.99 

[1] Estimated Balance Sheet as of March 31, 2026.

 

 

 

As described in the section "Description of the Securities Being Offered—Valuation Policies," in the Offering Circular, our operating agreement provides that, following the initial period, at the end of each quarterly period our Manager's internal accountants and asset management team will calculate our NAV using a process that reflects, among other matters:

 

 

●

an estimated value of our investments, as determined by the Manager's asset management team, including related liabilities, based upon (a) information from publicly available sources about (i) market rents, comparable sales information and interest rates and (ii) with respect to debt, default rates and discount rates, and (b) in certain instances reports of the underlying real estate provided by an independent valuation expert or automated valuation models;

 

 

●

the price of liquid assets for which third party market quotes are available;

 

 

●

accruals of our periodic distributions on our common shares; and

 

 

●

estimated accruals of the revenues, fees and expenses where we will (a) amortize the brokerage fee, offering expenses and sourcing fee over five years and (b) include accrued fees and operating expenses, accrued distributions payable, accrued management fees and any inter-company loans extended to the Company by our Manager.

 

Such determinations may include subjective judgments by the Manager regarding the applicability of certain inputs to market rents and comparable sales information. We do not utilize a capitalization rate approach in determining NAV, because given the nature of our investments in primary residences, we do not believe that the value of a many of our assets can be determined based solely on the business activities as the resale value of such asset will be decided independently of the success of such business activities.

 

Note, however, that the determination of our NAV is not based on, nor intended to comply with, fair value standards under U.S. GAAP, and such NAV may not be indicative of the price that we would receive for our assets at current market conditions. As a result, the calculation of our NAV may not reflect the precise amount that might be paid for your interests in a market transaction, and any potential disparity in our NAV may be in favor of either holders who redeem their interests, or holders who repurchase such interests, or existing holders. In instances where we determine that an appraisal of a property is necessary, including, but not limited to, instances where third party market values for comparable properties are either nonexistent or extremely inconsistent, we will engage an appraiser that has expertise in appraising residential real estate assets, to act as our independent valuation expert. The independent valuation expert is not responsible for, nor for preparing, our NAV per interest.

 

As there is no market value for the interests of any series as they are not expected to be listed or traded on any stock exchange (though periodic trading may become available pursuant to our arrangement with North Capital Private Securities ("NCPS"), which is intended to facilitate secondary transactions in interests on an alternative trading system owned and operated by NCPS, as described in the section "Description of Business—Liquidity Platform" in the Offering Circular), our goal in setting NAV on a quarterly basis is to provide a reasonable estimate of the value of our interests on a quarterly basis. However, each series property consists of residential real estate and, as with any residential real estate valuation protocol, the conclusions reached by the Manager's asset management team or internal accountants, as the case may be, are based on a number of judgments, assumptions and opinions about future events that may or may not prove to be correct. The use of different judgments, assumptions or opinions would likely result in different estimates of the value of our investments. In addition, for any given period, our published NAV may not fully reflect certain material events, to the extent that the financial impact of such events on our portfolio is not immediately quantifiable.

 

 

Safe Harbor Statement

The information contained in this Current Report on Form 1-U includes some statements that are not historical and that are considered "forward-looking statements."  Such forward-looking statements include, but are not limited to, statements regarding our development plans for our business; our strategies and business outlook; anticipated development of our company, the manager and the Arrived platform (defined in the Offering Circular); and various other matters (including contingent liabilities and obligations and changes in accounting policies, standards and interpretations).  These forward-looking statements express the manager's expectations, hopes, beliefs, and intentions regarding the future.  In addition, without limiting the foregoing, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.  The words "anticipates," "believes," "continue," "could," "estimates," "expects," "intends," "may," "might," "plans," "possible," "potential," "predicts," "projects," "seeks," "should," "will," "would" and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this Current Report on Form 1-U are based on current expectations and beliefs concerning future developments that are difficult to predict.  Neither our company nor the manager can guarantee future performance, or that future developments affecting our company, the manager or the Arrived platform will be as currently anticipated.  These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

All forward-looking statements attributable to us are expressly qualified in their entirety by these risks and uncertainties.  These risks and uncertainties, along with others, are also described in the Offering Circular under the headings "Summary – Summary Risk Factors" and "Risk Factors." Should one or more of these risks or uncertainties materialize, or should any of the parties' assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.  You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements.  We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer has duly caused this Current Report on Form 1-U to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on April 28, 2026.

 

 

 

 

 

ARRIVED STR 2, LLC

 

 

 

 

By:

Arrived Fund Manager, LLC

 

Its:

Managing Member

 

 

 

 

By:

/s/ Ryan Frazier

 

 

Name: Ryan Frazier

 

 

Title:  Chief Executive Officer