Fundrise Launches RSE Capital as Stand-Alone Company
The growing real estate crowdfunding platform is spinning off its real estate investment arm, which has already closed several deals.
By Alexandra Pacurar
Ben Miller, Co-Founder & CEO of Fundrise
Washington, D.C.—Crowdfunding real estate platform Fundrise is spinning off its real estate investment branch, RSE Capital Partners, into a stand-alone company. The new firm will focus on origination, underwriting, investment and management for the company’s eREIT platform. RSE will collaborate with top brokers and real estate firms nationwide, focusing on institutional-level assets, primarily multifamily acquisitions, multifamily development and infill bridge lending.
For now, the new company will aim for deals between $20 million and $100 million in value, but plans to extend the range in the near future.
“The real estate companies we partner with are focused on working with a capital provider that can add value to their businesses. Launching RSE Capital as a standalone company will allow us to focus more resources on continuing to provide the most flexible, reliable, and competitively priced equity and debt solutions in the marketplace,” Ben Miller, Fundrise’s co-founder & CEO, said in a prepared statement.
RSE has already closed several deals, including three with one its first partners, Arlington-based Insight Property Group. The two companies aim to invest $200 million in D.C. real estate annually. “Groups like Insight can choose any capital partner they want. Their decision to partner with RSE further validates our ability to go head-to-head with groups like Blackstone and Morgan Stanley,” Miller added.
The newly established company also worked with Peak Capital Partners on the $37.6 million purchase of Villas at Meadow Springs in Richland, Wash., and with Waypoint Residential on a preferred equity investment in the development of the Reserve at Falcon Pointe, a 324-unit Class A multifamily community near Austin, Texas.
Image courtesy of Fundrise
