UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1-U
CURRENT REPORT
Pursuant to Regulation A of the Securities Act of 1933
July 29, 2021
(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)
Asset Update
Controlled Subsidiary Investment - Waypoint Hackensack Urban-NJ Sub, LLC
On August 16, 2018, we directly acquired ownership of a “majority-owned subsidiary”, Waypoint Hackensack Urban-NJ Sub, LLC (the “RSE Waypoint Hackensack Controlled Subsidiary”), in which we had the right to receive a preferred economic return, for a purchase price of $3,750,000, which was the initial stated value of our equity interest in the RSE Waypoint Hackensack Controlled Subsidiary (the “RSE Waypoint Hackensack Investment”). The RSE Waypoint Hackensack Controlled Subsidiary used the proceeds to develop a multifamily property totaling 235 units located at 435 Main St, Hackensack, NJ 07601 (the “RSE Waypoint Hackensack Property”). Details of this acquisition can be found here.
On July 29, 2021, the RSE Waypoint Hackensack Controlled Subsidiary redeemed the RSE Waypoint Hackensack Investment in full. The RSE Waypoint Hackensack Controlled Subsidiary was able to pay down the outstanding principal balance and preferred return of the RSE Waypoint Hackensack Investment through a recapitalization of the RSE Waypoint Hackensack Property. The RSE Waypoint Hackensack Property is expected to be complete and receive a final certificate of occupancy by November 2021. All preferred return payments were paid in full during the investment period, and the investment yielded an annualized rate of return of approximately 11.25%.
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, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 offering circular 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 REIT, LLC
| | By: | Fundrise Advisors, LLC |
| | Its: | Manager |
| | | |
| | By: | /s/ Bjorn J. Hall |
| | Name: | Bjorn J. Hall |
| | Title: | General Counsel |
Date: August 4, 2021
