We’re pleased to share that Pender Woods, a build-for-rent community in Summerville, South Carolina, that we first acquired in October 2021, recently achieved an important development milestone, with over 75% of the community’s total 128 planned homes now fully constructed (as construction has progressed, we’ve adjusted our intended number of final homes, originally 200 at the time of acquisition, to better accommodate the property and our business plan for the investment). As tranches of the homes continue to deliver on a scheduled basis, we are leasing up the already finished homes; as of writing, roughly 98% of the already finished homes are occupied and generating income.

As homes at the property continue to be constructed, we will own and operate the community for the foreseeable future, as we anticipate significant appreciation in the property’s overall underlying value, powered by the updrafts driving the growth of build-for-rent as an asset type overall. We believe that build-for-rent stands at the convergence of three modern megatrends — technology, demographics, and affordability — and is in the process of becoming the next major asset class in the real estate industry, like malls in the 1960s and data centers in the 2000s. Fundrise is already one of the leading investors, drivers, and managers in the build-for-rent space.

Investor FAQ: How does this project impact your portfolio?

This investment is structured as equity, i.e., we are the owners of the property and entitled to our share of rental income as well as any profits from its eventual sale. Rental income it produces over the duration of our investment will contribute to quarterly dividends, while increases to the property value will be captured in adjustments to the Flagship Fund and Growth eREIT VII’s NAV per share.

As always, if you have any questions or feedback, please visit our help center or reach out to us at investments@fundrise.com.

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Additional Information: An investor in the Fundrise Real Estate Interval Fund (the “Flagship Fund”) should consider the investment objectives, risks, and charges and expenses of the Flagship Fund carefully before investing. The Flagship Fund’s prospectus contains this and other information about the Flagship Fund and may be obtained here. Investors should read the prospectus carefully before investing.