Fundrise Gets $125 Million Loan from Franklin BSP Realty Trust

Fundrise has received a $125 million loan from Franklin BSP Realty Trust (NYSE: FBRT), according to an email distributed by the

platform.

FBRT originates and manages a diversified portfolio of commercial real estate debt investments through a REIT structure. FBRT states that it has committed to $716 million of loan originations year-to-date and has a solid pipeline.

Michael Comparato, President of FBRT,  said that Fundrise has been a leader in industrial acquisitions over the last 18 months.

Fundrise is a real estate investment platform that offers non-listed REITs to the public. The platform leverages the Reg A+ securities exemption to offer the funds to the public.

Fundrise states that the loan will be used to renovate an industrial portfolio in the Southwest of the US. Fundrise purchased the portfolio from February 2022 to June 2023. The company reports that the properties are 95% leased to three tenants.

Fundrise states that it continues to “lean into new acquisitions and grow its footprint while much of the market remains on the sidelines.” The properties are said to be used for warehousing, distribution, and manufacturing. As e-commerce has risen in popularity, there is a rising need for these types of facilities, according to Fundrise.

“Our goal with these investments is to generate a consistent income from commercial tenants and position our investors to capture any appreciation in the value of these properties in supply-constrained areas.”

Fundrise anticipates that 2024 will be the “best investment environment since 2008,” and it expects to aggressively expand its portfolio.

While Fundrise is bullish, some sectors of real estate remain subdued—such as commercial properties in big metropolitan areas like San Francisco, which have cratered due to WFH and poor governance by elected officials.

For Q1 2024, Fundrise reported that its Income Fund realized an annualized distribution rate of 7.91%. Its Flagship Fund generated a return of 2.46%.

 

 



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