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
December 6, 2021
(Date of Report (Date of earliest event reported))
FUNDRISE EFUND, LLC
(Exact name of registrant as specified in its charter)
Delaware | 61-1775059 |
(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
4700 Eisenhower Ave Controlled Subsidiary – Alexandria, VA
On December 6, 2021, we directly acquired ownership of a “wholly-owned subsidiary,” FRIND-Eisenhower, LLC (the “4700 Eisenhower Ave Controlled Subsidiary”) for an initial purchase price of approximately $14,100,000, which is the initial stated value of our equity interest in the 4700 Eisenhower Ave Controlled Subsidiary (the “4700 Eisenhower Ave Investment”). The 4700 Eisenhower Ave Controlled Subsidiary used the proceeds of the 4700 Eisenhower Ave Investment to acquire a vacant industrial building containing approximately 45,000 square feet of net rentable area on an approximately 3.8-acre site located at 4700 Eisenhower Ave Drive, Alexandria, VA 22304 (the “4700 Eisenhower Ave Property”). The initial 4700 Eisenhower Ave Investment was funded with proceeds from our Offering, and the closing of the initial 4700 Eisenhower Ave Investment and the 4700 Eisenhower Ave Property occurred concurrently.
Pursuant to the agreements governing the 4700 Eisenhower Ave Investment, we have full authority for the management of the 4700 Eisenhower Ave Controlled Subsidiary, including the 4700 Eisenhower Ave Property. In addition, an affiliate of our sponsor earned an acquisition fee of approximately 1.0% of the total 4700 Eisenhower Ave Property purchase price, paid directly by the 4700 Eisenhower Ave Controlled Subsidiary.
The total purchase price for the 4700 Eisenhower Ave Property was approximately $14,100,000, or approximately $392 per rentable square foot. We anticipate tenant improvement costs of approximately $2,950,000 and soft costs of $495,000 for the closing of the acquisition, bringing the total projected project cost for the 4700 Eisenhower Ave Property to approximately $17,545,000.
The 4700 Eisenhower Ave Property was built in 1972 and was delivered vacant. The 4700 Eisenhower Ave Property is located in the Eisenhower Ave submarket, approximately 58 miles from Baltimore, MD, 12 miles from Washington, D.C., and 5 miles from the I-395/495/95 interchange. No financing was used for the acquisition of the 4700 Eisenhower Ave Property; however, financing may be pursued at a later date.
The following table contains underwriting assumptions for the 4700 Eisenhower Ave 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 | Projected Average Annual Rent Growth | Projected Exit Cap Rate | Projected Hold Period | |||||||
4700 Eisenhower Ave | 5.0 | % | 4.25 | % | 5 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 eFund, 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, 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 eFUND, LLC | ||
By: | Fundrise Advisors, LLC | |
Its: | Manager | |
By: | /s/ Bjorn J. Hall | |
Name: | Bjorn J. Hall | |
Title: | General Counsel |
Date: December 9, 2021