1-U 1 tm2221968d1_1u.htm 1-U

 

 

 

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 21, 2022

(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)

 

 

 

 

 

 

Item 9. Other Events

 

Asset Acquisitions

 

Pine Ridge Place Controlled Subsidiary - Fountain Inn, SC

 

On July 21, 2022, we acquired ownership of a “majority-owned subsidiary”, FR - Pine Ridge Place, LLC (“Pine Ridge Place Controlled Subsidiary”), for a purchase price of approximately $286,000 which is the initial stated value of our equity interest in a new investment round in Pine Ridge Place Controlled Subsidiary (“Pine Ridge Place eREIT VII Investment”). Fundrise Real Estate Interval Fund, LLC acquired ownership of the remaining equity interest in the new investment round in Pine Ridge Place Controlled Subsidiary, for a purchase price of approximately $2,572,000 (“Pine Ridge Place Interval Fund Investment” and, together with Pine Ridge Place Growth eREIT VII Investment, “Pine Ridge Place Investment”). Pine Ridge Place Controlled Subsidiary used the proceeds of the Pine Ridge Place Investment to acquire eight (8) detached single family homes in the planned Pine Ridge Place subdivision generally located off of N Nelson Dr in Fountain Inn, SC (the “Pine Ridge Place Property”). We anticipate the Pine Ridge Place Controlled Subsidiary, or one of our affiliates, will purchase up to one-hundred-twelve (112) homes in the Pine Ridge Place Property from the home builder as construction progresses and certificates of occupancy are secured. The initial Pine Ridge Place Growth VII eREIT Investment was funded with proceeds from our Offering, and the closing of the initial Pine Ridge Place Investment and initial tranche of the eight (8) single family homes occurred concurrently.

 

Pine Ridge Place Controlled Subsidiary is managed by us.

 

Pursuant to the agreements governing Pine Ridge Place Growth eREIT VII Investment, we have authority for the management of Pine Ridge Place Controlled Subsidiary, including Pine Ridge Place Property. In addition, an affiliate of our sponsor earned an acquisition fee of approximately 1.0% of the total purchase price, paid directly by Pine Ridge Place Controlled Subsidiary.

 

The total purchase price for the Pine Ridge Place Property is anticipated to be approximately $40,241,000, an average of approximately $359,000 per home. We anticipate additional hard costs of approximately $639,000 for miscellaneous minor capital expenditures, as well as additional soft costs and financing costs of approximately $1,682,000 bringing the total projected project cost for the Pine Ridge Place Property to approximately $42,562,000. The home builder expects to deliver approximately eight (8) homes per month, with full delivery of the one-hundred-twelve (112) homes expected in September 2023. Pine Ridge Place Property consists of a mix of unit types and floorplans, ranging from 1,854 square foot 3 bedroom, 2.5 bath homes to 2,376 square foot 4 bedroom, 3.5 bath homes. Professional third-party property management will be installed to manage the Pine Ridge Place Property.

 

The following table contains underwriting assumptions for the Pine Ridge Place 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
Stabilized
Economic Vacancy
Average Annual
Rent Growth
Average Annual
Expense Growth
Exit Cap
Rate
Hold
Period
Pine Ridge Place 6.50% 3.00% 3.09% 4.50% 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.

 

 

 

 

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: July 27, 2022