Fundrise, an online investment platform that specializes in real estate assets, has received a $770 million credit facility from JP Morgan.
The financing was revealed earlier this month and is expected to be used for “35 purpose-built rental communities” or 4000 build-for-rent (BFR) units. These residential projects will be in the sunbelt of the US, including Georgia, Tennessee, and the Carolinas. The southern states have experienced population growth as some families move to warmer climates and more tax-friendly states.
Fundrise said the credit facility would almost double its existing BFR portfolio.
Fundrise’s existing portfolio is highly concentrated in the southern states. Fundrise notes that much of its investments have focused on residential developments and not industrial/commercial.
Fundrise reports over $3 billion in assets under management and more than two million users.
Fundrise typically utilizes Reg A+ to sell property-based securities to all investors.
In recent years, Fundrise has leveraged its experience with the Reg A+ securities exemption and extended into early stage investing offering private securities funds.
