Fundrise Expands BTR Strategy With $770M Credit Facility

The funds will back approximately 4,000 units of single-family rental homes in several states.

An L-shaped pool surrounded by apartment buildings and trees.

Fundrise acquired the Lake Shadow Apartments in Maitland, Fla., in 2021, rebranding the property as Luna at Lake Shadow. Image courtesy of Fundrise

Fundrise is expanding its built-to-rent strategy with a $770 million credit facility from J.P. Morgan, which will be used to finance approximately 35 BTR communities totaling roughly 4,000 units across the Sun Belt.

The properties will be located in Georgia, North Carolina, South Carolina and Tennessee and will nearly double Fundrise’s existing BTR portfolio, making it one of the largest operators of the asset class in the U.S. In June 2021, Fundrise closed a $300 million credit facility with Goldman Sachs that financed nearly $500 million of newly constructed single-family rentals in high-growth Sun Belt markets.

Fundrise’s existing BTR footprint is highly concentrated in the Sun Belt and comprises 5,000 units valued at $1.35 billion with a 93 percent occupancy rate and 4 percent rent growth year-over-year. The firm prefers to invest in purpose-built single-family communities rather than buying one-off houses to rent.

Real estate-related investments

Founded over 10 years ago, the online investment platform has more than $2.8 billion in assets under management, including investment vehicles focused on real estate private equity, private credit and growth equity.

As part of its Sun Belt-focused multifamily investment strategy, Fundrise acquired Lake Shadow Apartments in Maitland, Fla., from Bainbridge Cos. for $83.1 million in June 2021. The property was rebranded as Luna at Lake Shadow. Located in the Orlando market, the Class A 300-unit rental community has a mix of one-, two- and three-bedroom floorplans and amenities including a pool, private pier, outdoor dining pavilions and private workspaces. That deal marked Fundrise’s fourth direct acquisition of a multifamily property since March 2021. Those four deals totaled upwards of $285 million. The firm’s other multifamily acquisitions that year included rental communities in Odessa, Fla., and Georgetown, Texas.

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