The Fundrise Balanced eREIT II originates, invests in, and manages a diversified portfolio of newly built multifamily communities.
We intend to focus on acquiring a diversified group of core-plus, value-add, opportunistic, and fixed income investments with an emphasis on high-growth geographies, primarily across the Sunbelt, for a balanced portfolio designed to generate consistent current returns and take advantage of asset appreciation over the long term.
Investment strategy drivers:
- High-growth geographies: Investing in assets primarily located in Sunbelt MSAs that are benefiting from demographic changes, improved job growth, and strong economic dynamics leading to asset appreciation, especially within the multifamily and residential sectors.
- Low cost basis: Acquiring properties at or below their replacement cost, a strategy known as value investing. In other words, the price paid to acquire a property is less than what it would cost someone else to build a similar property in the same location today.
- Debt capital flexibility and diversification: Optimizing debt strategies via a mix of standalone property debt and larger portfolio-backed credit facilities while maintaining a low/moderate amount of overall leverage to mitigate the risk of increasing interest rates.
- Vertical integration: A vertically integrated value chain, allowing us to leverage technology in our asset management and operations of the assets.
- Opportunistic investing: The ability to pivot quickly and respond opportunistically to market conditions, such as acquiring properties in distress or investing in multifamily development via preferred equity or debt-like investments during disrupted credit markets.
