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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 12/21/21 Fundrise Growth Ereit VII, LLC 1-U:9 12/16/21 1:23K Toppan Merrill/FA |
Document/Exhibit Description Pages Size 1: 1-U Current Report HTML 16K
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
(Date of Report (Date of earliest event reported))
FUNDRISE GROWTH EREIT VII, LLC
(Exact name of registrant as specified in its charter)
| Delaware | 84-4457263 |
| (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)
C:
Item 9. Other Events
Asset Acquisition
FR - Cedar Ridge Controlled Subsidiary – Cedar Ridge Property - Charlotte, NC
On December 16, 2021, we acquired ownership of a “majority-owned subsidiary,” FR - Cedar Ridge, LLC (the “FR - Cedar Ridge Controlled Subsidiary”), for a purchase price of approximately $952,000, which is the stated value of our equity in a new investment round in the FR - Cedar Ridge Controlled Subsidiary (the “Cedar Ridge Growth VII eREIT Investment”). Fundrise Real Estate Interval Fund, LLC acquired ownership of the remaining equity interest in the new investment round for the FR - Cedar Ridge Controlled Subsidiary for a purchase price of approximately $8,564,000 (the “Cedar Ridge Interval Fund Investment” and, together with the Cedar Ridge Growth VII eREIT Investment, the “Cedar Ridge Investment”). The FR - Cedar Ridge Controlled Subsidiary used the proceeds of the Cedar Ridge Investment to acquire 12.84 acres of improved land generally located off of Settlers Trail Court in Charlotte, NC (the “Cedar Ridge Property”). We anticipate the FR - Cedar Ridge Controlled Subsidiary, or one of our affiliates, will construct seventy-four (74) townhomes on the Cedar Ridge Property, with the first set of homes expected to be delivered in January 2022. The Cedar Ridge Growth VII eREIT Investment was funded with proceeds from our Offering, and the closing of the Cedar Ridge Investment and Cedar Ridge Property occurred concurrently.
The FR - Cedar Ridge Controlled Subsidiary is managed by us.
Pursuant to the agreements governing the Cedar Ridge Growth VII eREIT Investment, we have authority to manage the Cedar Ridge Property through the FR - Cedar Ridge Controlled Subsidiary. In addition, an affiliate of our sponsor earned an acquisition fee of approximately 1.0% of the Cedar Ridge Investment, paid directly by the FR - Cedar Ridge Controlled Subsidiary.
The total purchase price for the Cedar Ridge Property is anticipated to be approximately $31,046,000, an average of approximately $420,000 per home. The Cedar Ridge Property will be operated within a typical for-sale housing community. The home builder expects to deliver approximately six (6) homes per month, with full delivery of the seventy-four (74) townhomes expected in January 2023.
The Cedar Ridge Property will have a mix of unit types and floorplans, ranging from 1,761 square foot, 3 bedroom, 2.5 bath homes to 2,374 square foot, 3 bedroom, 2.5 bath townhomes. Due to the new construction, it is not anticipated that material hard or soft costs will be incurred in the near term. It is anticipated that professional third party property management will be installed to manage the Cedar Ridge Property.
The following table contains underwriting assumptions for the Cedar Ridge 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.
C:
| Asset Name | Stabilized Economic Vacancy |
Average Annual Rent Growth |
Average
Annual Expense Growth |
Exit
Cap Rate |
Hold Period
|
| Cedar Ridge Property | 6.50% | 3.19% | 2.77% | 4.75% | 10 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 Growth eREIT VII, 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 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.
C:
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 GROWTH EREIT VII, LLC | ||
| By: | Fundrise Advisors, LLC | |
| Its: | Manager | |
| By: | /s/ Bjorn J. Hall | |
| Name: | Bjorn J. Hall | |
| Title: | General Counsel | |
Date: December 21, 2021
C:
| This ‘1-U’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| Filed on: | 12/21/21 | 253G2 | ||
| For Period end: | 12/16/21 | |||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/05/24 Fundrise Growth Ereit VII, LLC 1-K 12/31/23 2:514K Toppan Merrill/FA 11/22/23 Fundrise Growth Ereit VII, LLC 1-A 4:1.4M Toppan Merrill/FA 10/06/23 Fundrise Growth Ereit VII, LLC 253G2 1:466K Toppan Merrill/FA 9/12/23 Fundrise Growth Ereit VII, LLC 1-SA 6/30/23 2:918K Toppan Merrill/FA 4/11/23 Fundrise Growth Ereit VII, LLC 1-K 12/31/22 4:757K Toppan Merrill/FA 12/15/22 Fundrise Growth Ereit VII, LLC 253G2 1:2M Toppan Merrill/FA 12/06/22 Fundrise Growth Ereit VII, LLC 1-A POS 12/05/22 5:2.1M Toppan Merrill/FA 10/13/22 Fundrise Growth Ereit VII, LLC 253G2 1:430K Toppan Merrill/FA 9/21/22 Fundrise Growth Ereit VII, LLC 1-SA 6/30/22 1:449K Toppan Merrill/FA 5/10/22 Fundrise Growth Ereit VII, LLC 253G2 5/09/22 1:1.8M Toppan Merrill/FA 4/27/22 Fundrise Growth Ereit VII, LLC 1-A POS 4/26/22 5:1.8M Toppan Merrill/FA 4/19/22 Fundrise Growth Ereit VII, LLC 1-K 12/31/21 4:423K Toppan Merrill/FA |