We're pleased to announce the Fundrise Opportunistic Credit Fund II (aka “OCFII”) has made its first investment: a senior debt bridge loan for a 326-unit multifamily residential development in Sanford, Florida, approximately 20 miles north of Orlando. This 12.5%1 annualized interest rate investment reflects the compelling opportunities we continue to identify in the commercial real estate credit markets as we deploy capital from the newly launched fund.

Investment overview

The investment provides bridge financing to support pre-development activities for a 326-unit multifamily residential community within Reagan Center, a large-scale mixed-use development in Sanford, FL.

  • Location: Sanford, FL, a growing suburb with its own international airport, approximately 20 miles north of Orlando
  • Investment purpose: The bridge loan provides financing for the borrower to finalize construction grade drawings, pull permits, and secure a capital partner for vertical construction
  • Experienced sponsor: The borrower is an experienced and repeat sponsor with an established track record
  • Broader project context: The development is the first phase of Reagan Center, a large-scale mixed-use destination that will ultimately include roughly 1,000 apartment units, office and retail space totaling approximately 900,000 square feet, nearly 400,000 square feet of office and medical office space, and a hotel

Investment structure

  • Senior debt bridge loan: The investment is structured as senior debt—providing priority positioning in the capital stack with strong downside protection—in the form of a bridge loan, which is short-term financing that "bridges" the gap between immediate capital needs and (in this instance) the expected construction financing
  • Attractive yield: The 12.5%1 annualized interest rate delivers a compelling return in line with OCFII's target net return range of 9-11%
  • Short term: The loan features a 9-month initial term allowing for the Fund to begin earning yield quickly while also having the opportunity to redeploy the capital in the near term

Market context

Sanford's position as a growing Orlando suburb with strong infrastructure, including its own international airport, continues to attract both residents and commercial development. The broader Reagan Center development is positioned to become a significant mixed-use destination for the area, with substantial retail, commercial, office, medical office, and hospitality components alongside residential housing.

What this means for OCFII

This investment represents exactly the type of opportunity we highlighted at the fund's launch: well-structured credit positions in quality assets with experienced operators. The senior debt structure, combined with the short-term nature of the bridge loan, provides attractive risk-adjusted returns while maintaining our disciplined focus on capital preservation.

As we continue deploying capital from OCFII, we remain focused on identifying investments that balance compelling yields with strong downside protections in an environment that continues to favor well-capitalized private credit providers.

To ensure a spot in the next investment window, please contact our Investor Relations team at investments@fundrise.com.