Filed Pursuant to Rule 253(g)(2)
File No. 024-10970
FUNDRISE GROWTH EREIT 2019, LLC
SUPPLEMENT NO. 5 DATED NOVEMBER 15, 2019
TO THE OFFERING CIRCULAR DATED MAY 10, 2019
This document supplements, and should be read in conjunction with, the offering circular of Fundrise Growth eREIT 2019, LLC (“we”, “our” or “us”), dated May 10, 2019 and filed by us with the Securities and Exchange Commission (the “Commission”) on May 23, 2019 (the “Offering Circular”). Unless otherwise defined in this supplement, capitalized terms used in this supplement shall have the same meanings as set forth in the Offering Circular.
The purpose of this supplement is to disclose:
| · | Asset acquisitions. |
Asset Acquisition
RSE R450 Controlled Subsidiary – Brentwood, MD
On November 8, 2019, we directly acquired ownership of a “wholly-owned subsidiary”, R450 (the “RSE R450 Controlled Subsidiary”), for a purchase price of approximately $7,660,000, which is the initial stated value of our equity interest in the RSE R450 Controlled Subsidiary (the “RSE R450 Investment”). The RSE R450 Controlled Subsidiary used the proceeds to close on the acquisition of two buildings totaling approximately 43,500 square feet of gross rentable area on an approximately 117,000 square foot lot (the “R450 Property”). The R450 Property was fully occupied at the date of purchase, and has the potential to be redeveloped into a mixed-use multifamily development. The closing of both the RSE R450 Investment and the R450 Property occurred concurrently.
The RSE R450 Controlled Subsidiary is managed by us.
Pursuant to the agreements governing the RSE R450 Investment (the “RSE R450 Operative Agreements”), we have full authority for the management of the RSE R450 Controlled Subsidiary, including the R450 Property. In addition, an affiliate of our sponsor earned an acquisition fee of approximately 1.0% of the RSE R450 Investment,paid directly by the RSE R450 Controlled Subsidiary. No financing was used for the acquisition of the R450 Property.
The R450 Property is composed of two buildings and is located in the 20722 zip code of Brentwood, MD. As of November 8, 2019, the R450 Property was 100% occupied by two tenants. One tenant is month-to-month, while the other has 2 years left on its lease. The initial business plan is to obtain entitlements for approximately 300 multifamily units. This process is expected to take between 10-14 months. We believe that the R450 Property offers great development potential due to its size and location along a major DC to MD corridor as well as a growing Arts District in Hyattsville, MD.
The Brentwood neighborhood is located minutes from downtown Washington, DC and adjacent to the growing Route 1 corridor created by the University of Maryland, College Park. There has been recent investment in the area and we are expecting continued gentrification over the next seven to ten years. With high demand for affordable housing and new retail and office developments nearby, we believe this well-located investment should provide attractive returns over our holding period.
The following table contains performance assumptions and projections. Individual assumptions and projected returns are presented at the asset level. All of the values in the table below are projections and assumptions that we believe to be reasonable; however, there can be no guarantee that such results will be achieved.
| Asset Name | Projected Returns | Projected Exit Cap Rate (as NNN lease) | Projected Units / Gross Square Footage (Redeveloped) | Projected Hold Period |
| R450 | 7.8% - 11.6% | 5.25% | 300 Units / 310,000 SF | 10 years |
Please note that past performance is not indicative of future results, and these asset performance projections may not reflect actual future performance.Any projections on the future returns of any of our assets may not prove to be accurate and are highly dependent on the assumptions described above. Investing inFundrise Growth eREIT 2019, LLCis 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.
