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
October 19, 2022
(Date of Report (Date of earliest event reported))
FUNDRISE MIDLAND OPPORTUNISTIC REIT, LLC
(Exact name of registrant as specified in its charter)
| Delaware | 32-0479856 |
| (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 - Audelia Fundrise Controlled Subsidiary
On August 15, 2019, we directly acquired ownership of a “majority-owned subsidiary”, Audelia Fundrise JV, LLC (the “Audelia Controlled Subsidiary”), in which we had the right to receive a preferred economic return for a purchase price of $7,530,000, which was the initial stated value of our equity interest in the Audelia Controlled Subsidiary (the “Audelia Investment”). The Audelia Controlled Subsidiary used the proceeds of the Audelia Investment to acquire two adjacent multifamily properties totaling 534 units and approximately 389,000 rentable square feet located at 13015 Audelia Road, Dallas, TX 75243 and 13030 Audelia Road, Dallas, TX 75243 (together, the “Audelia Property”). Details of this acquisition can be found here.
On October 19, 2022, the Audelia Controlled Subsidiary redeemed the Audelia Investment in full. The Audelia Controlled Subsidiary was able to pay down the outstanding principal balance and preferred return of the Audelia Investment through the sale of the Audelia Property. All preferred return payments were paid in full during the investment period, and the investment yielded an annualized rate of return of approximately 11.1%.
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 MIDLAND OPPORTUNISTIC REIT, LLC | |||
| By: | Fundrise Advisors, LLC | ||
| Its: | Manager | ||
| By: | /s/ Bjorn J. Hall | ||
| Name: | Bjorn J. Hall | ||
| Title: | General Counsel | ||
Date: October 25, 2022