UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 1-U
CURRENT REPORT
Pursuant Regulation A of the Securities Act of 1933
September 18, 2020
(Date of Report (Date of earliest event reported))
FUNDRISE EAST COAST OPPORTUNISTIC REIT, LLC
(Exact name of registrant as specified in its charter)
| Delaware | 30-0889118 |
| (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 Update
Controlled Subsidiary Investment – Waypoint Tampa Starkey Owner, LLC
On October 30, 2017, we directly acquired ownership of a “majority-owned subsidiary,” Waypoint Tampa Starkey Owner, LLC (the “Waypoint Starkey Controlled Subsidiary”), in which we had the right to receive a preferred economic return for a purchase price of $5,670,000, which was the initial stated value of our equity interest in the Waypoint Starkey Controlled Subsidiary (the “Waypoint Starkey Investment”). The Waypoint Starkey Controlled Subsidiary used the proceeds to develop a single multifamily property totaling 384 units located at 2500 Heart Pine Ave, Odessa, FL 33556 (the “Waypoint Starkey Property”). Details of the acquisition can be found here.
The project was completed in Q4 2019 and was roughly 93% occupied by September 2020. With the project approaching stabilization, the Waypoint Starkey Controlled Subsidiary elected to redeem the Waypoint Starkey Investment on September 18, 2020. All preferred return payments have been paid in full during the investment period, yielding an annualized return of approximately 11.0%.
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 EAST COAST OPPORTUNISTIC, LLC |
| | | |
| | | | |
| | By: | Fundrise Advisors, LLC | |
| | Its: | Manager | |
| | | | |
| | By: | /s/ Bjorn J. Hall | |
| | Name: | Bjorn J. Hall | |
| | Title: | General Counsel | |
Date: September 24, 2020
