Fundrise Real Estate Interval Fund, LLC
Last Updated 08/21/2023
Shows hypothetical growth of $1000 since inception
Total Managed Assets*
Net Expense Ratio
*represents total managed funds for the fund complex
About The Fund
The Fundrise Real Estate Interval Fund, LLC (the "Fund") went effective on 12/18/2020, and was intended to serve as Fundrise's eventual flagship fund. At the time of launch, Fundrise already had about 150,000 investors spread across a series of REITs and eREITs, and although the Fund is an interval fund, it also elected to be taxed as a REIT.
Core benefits of launching the Fund into their existing investor community include a target offering of $1 billion, larger than their earlier REITs and thus intended to offer better diversification. It also offers quarterly liquidity and daily pricing, both advantages over their earlier REIT offering.
The Fund was always intended to be distributed directly to Fundrise investors via their existing technology, and instead of working through the challenges of integrating with existing fund administrator and distributor technology platforms, Fundrise opted to self-administer and self-distribute the Fund.
Notably, Fundrise lowered the Fund's minimum initial investment from $500 to just $10 in August 2021, and while other interval funds may opt to waive upfront minimums for investors that access their funds through custody platforms, this Fund now offers the lowest minimum investment stated in their SEC materials. The Fund had over $489 million in total assets as of 9/30/2021.
From the fund's prospectus:
Fundrise Real Estate Interval Fund, LLC is organized as a Delaware limited liability company that is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified, closed-end management investment company that is operated as an “interval fund.” The Fund intends to elect to be taxed as a real estate investment trust (a “REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”).
Rise Companies Corp. (“Rise Companies”), the Fund’s sponsor, owns and operates through its subsidiary Fundrise, LLC, an investment platform available both online at www.fundrise.com and through various mobile applications sponsored by Rise Companies (collectively referred to herein along with the Fund’s website www.fundriseintervalfund.com, the “Fundrise Platform”). Rise Companies believes in leveraging technology to build a better financial system that empowers individuals. With technology, Rise Companies can create a more efficient mechanism than the conventional financial system to invest in real estate and other alternative assets. Please see “Plan of Distribution” for more information on Rise Companies’ mission to make real estate and alternative asset investing easier and more efficient for retail investors.
The Fund’s investment objective is to seek to generate current income while secondarily seeking long-term capital appreciation with low to moderate volatility and low correlation to the broader markets. There can be no assurance that the Fund will achieve its investment objective.
The Fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in a diversified portfolio of private real estate and publicly traded real estate-related investments. Such investments may be comprised of the following primary asset classes: (i) private commercial real estate (“CRE”) investments, primarily in the form of equity and debt (“Private CRE”), and (ii) publicly traded real estate debt and equity securities (“Publicly Traded Real Estate Securities”). The CRE assets underlying the Fund’s Private CRE and Publicly Traded Real Estate Securities include office, retail, multifamily residential and industrial properties. The Fund’s investments in Private CRE may include whole interests in real properties (under normal circumstances, the Fund does not expect to invest more than 50% of its net assets in whole interests in real properties), partial interests in real properties, mortgage debt, mezzanine debt (which is generally indebtedness secured by equity of an entity that owns real estate) and other private real estate investments, such as private equity real estate funds. The Fund may seek to originate, acquire and structure a wide variety of commercial real estate loans, including, without limitation, senior mortgage loans, subordinated mortgage loans (also referred to as B-Notes) or mezzanine loans, which may be in the form of whole loans, secured and unsecured loans, senior and second lien loans or similar investments, or participation interests in such loans or investments. The Fund’s investments in Publicly Traded Real Estate Securities may include commercial mortgage-backed securities, residential mortgage-backed securities and other equity or debt securities issued by real estate-related companies, REITs or real estate-related investment companies.
The Fund will typically gain exposure to its Private CRE through co-investment arrangements, joint ventures or wholly owned subsidiaries (collectively, “Real Estate Investment Vehicles”). The potential investment structure of the Real Estate Investment Vehicles themselves may also vary. The Real Estate Investment Vehicles may be entities, including special purpose vehicles, in which the Fund has a majority or minority interest or wholly owned subsidiaries of the Fund. The Real Estate Investment Vehicles are expected to primarily consist of entities in which the Fund will co-invest alongside affiliates of the Fund, including those of the Adviser (“Co-Investment Entities”), subject to the terms and conditions of an exemptive order the Fund received from the SEC allowing the Fund and/or the Co-Investment Entities to co-invest alongside certain entities affiliated with or managed by the Adviser (including the “eREITs®” and “eFundTM” described in the Prospectus). To a lesser extent, the Real Estate Investment Vehicles may also consist of wholly owned subsidiaries of the Fund (“Wholly Owned Entities”) and entities in which the Fund will co-invest solely alongside unaffiliated third party investors (“Joint Venture Entities”).
Adviser: Fundrise Advisors, LLC
Administrator: Fundrise Advisors, LLC
Custodian: Millennium Trust Company, LLC
Legal Counsel: Goodwin Procter LLP
Partner: Paul J. Delligatti
Public Accounting Firm: KPMG LLP
Transfer Agent: Computershare, Inc.
Percentage and dollar changes represent the increase or decrease in the NAV from the preceding trading day.