PRESS RELEASE
Fundrise announced a $770 million credit facility from J.P. Morgan, which will be used to finance approximately 35 purpose-built rental communities (approximately 4,000 build-for-rent (BFR) units) across the Sunbelt with a specific focus on Georgia, the Carolinas, and Tennessee. The investment would nearly double Fundrise’s existing BFR portfolio and will make it one of the largest operators of the asset class in the U.S.
The commitment from J.P. Morgan comes at a time when mortgage rates rest above 7%, driving strong demand for new rental housing in growth markets. Rather than investing in one-off houses, Fundrise has committed to purpose-built rental communities with diverse amenities akin to modern apartment buildings, a concept the company refers to as “horizontal multifamily.” Fundrise’s existing footprint - which is highly concentrated in the Sunbelt - comprises approximately 5,000 units ($1.35B in value) with a 93% occupancy rate and 4% rent growth YOY.
Fundrise has grown significantly as a real estate investor in recent years even as parts of the market have softened, due in large part to their focus on residential and industrial and lack of exposure to office. The company has nearly $3 billion in equity assets under management (AUM) and over two million users. In the last year, the company has expanded beyond real estate into other private market asset classes including venture capital and private credit. These expansions are integral to the company’s overarching strategy: to democratize access to alternatives and develop a landscape of stable investment opportunities tailored for a new generation of investors.
| WHAT IS BUILD-FOR-RENT? Build-for-rent focuses on building whole communities of new homes in well-located areas primed for population growth driven by technological, demographics, and affordability megatrends. By purchasing these homes in volume directly from homebuilders and leasing them ourselves as stabilized communities, we believe we can get better prices — and returns — than buying the “finished product.” 
Learn more about BFR and how to invest |
