Fundrise Growth eREIT VII originates, invests in, and manages a diversified portfolio of build-for-rent (BFR) single-family home communities. Our BFR strategy is to build whole communities of newly constructed homes, purpose-built for rent, including amenities and operational efficiencies standard for institutional multifamily.
We intend to use substantially all of the proceeds of this offering to originate, acquire, asset manage, operate, finance, and opportunistically sell build-for-rent (BFR) single family home communities (horizontal multifamily). BFR means a whole community of homes purpose-built for rent, which is in contrast to the single family rental (SFR) industry, which acquires existing homes scattered across a metropolitan area.
We intend to focus on acquiring properties that have significant potential for capital appreciation, such as those requiring development, lease-up, repositioning, and those located in Sunbelt markets with high growth potential.
Investment strategy drivers:
- New construction: Acquiring or tying up control of build-for-rent single family communities pre-construction has many advantages for our investors, both in how transactions are structured and in how assets are operated for the long term.
- Debt capital flexibility and diversification: Flexibility in debt execution for BFR assets, with the ability to achieve significant economies of scale in portfolio financing structures to achieve the best risk-adjusted returns.
- Vertical integration: Our vertically integrated value chain empowers us to leverage technology in asset management and operations of the assets, enhancing efficiency and optimizing performance.
- Opportunistic investing: Ability to pivot quickly and respond opportunistically to market conditions, such as investing in SFR securitizations during disrupted credit markets.
