Fundrise Opportunity Fund
The compelling benefits of Opportunity Zone investing,
all through our simple, low-cost online platform.
Overview
Open to
Accredited investors
Target IRR¹
10 – 12%
Min. initial investment
$25,000
Anticipated term
At least 10 years
Tax reporting
Form 1099-DIV
The Fundrise Opportunity Fund seeks to acquire high-quality real estate properties located in designated Opportunity Zones that have strong long-term growth potential. The Fund intends to meet the requirements necessary to qualify as an Opportunity Fund as defined in the Tax Cuts and Jobs Act of 2017 in order to avail investors of the substantial tax-related benefits provided under the bill.
The Fund is managed by Fundrise Advisors, LLC, a registered investment adviser with the SEC² and wholly owned subsidiary of Rise Companies Corp, the parent company of Fundrise. As of June 30, 2018, Rise Companies Corp, as a sponsor, has originated and invested in real estate with an aggregate purchase price of $2.3 billion, and manages eight proprietary real estate investment vehicles.
The Fund anticipates an investment term of no less than 10 years in order to capture the full tax benefits offered under the tax code for Opportunity Funds.
1. There can be no assurance that such performance will be achieved, and investors may be subject to partial or total loss.
2. Registration with the SEC does not imply a certain level of skill or training.
2. Registration with the SEC does not imply a certain level of skill or training.
Example business plan
Historic renovation in an emerging Washington, DC neighborhood
Our first acquisition is located on the corner of Fourth Street NW in the heart of Washington, DC’s historic LeDroit Park neighborhood. Founded in 1873 as a suburb of the nation’s capital, the neighborhood was originally designed to attract affluent homebuyers, with romantic, tree-lined streets and ornate architecture. To this day, it is still home to some of the best-preserved Victorian architecture in the city.
Along with other neighborhoods in the area, LeDroit Park suffered significant damage during the riots of 1968. Over the last two decades, it has experienced a resurgence, with many homes restored to their original grandeur.
The Fourth Street property was originally a mixed-use building with neighborhood-serving retail on the first floor, and apartments on the second and third. Since that time, the property had been slowly deteriorating. The retail portion of the building has been without a certificate of occupancy for nearly 20 years.
The Fundrise Opportunity Fund acquired the property in July 2018. We plan to completely restore the original historic structure, expand the residential floor area with a modern addition, and bring the original retail component back to life.
Holdings
The Fundrise Opportunity Fund is currently ramping up and
plans to acquire these and other properties in the near future.
About the sponsor
- Founded in 2012, Fundrise’s experienced team of 64 professionals manages eight real estate investment vehicles publicly reporting to the SEC.
- Board members and key institutional backers include Silverstein Properties (World Trade Center owner-developer), Oak Pacific Investments, and Guggenheim Partners.
- Fundrise invested in, manages, or owns over $2.3 billion in real estate nationwide with over $426 million aggregate funds raised across our programs.
Annual returns4
| 2014 | 12.25% |
| 2015 | 12.42% |
| 2016 | 8.76% |
| 2017 | 11.44% |
Real estate track record5
$2.3B
Total value of real
estate originated
estate originated
$426M
Aggregate funds
raised
raised
181
Real estate
investments
investments
56
Investments
fully paid back
fully paid back
4. Specifically, the time-weighted weighted average annualized total returns of Rise Companies Corp sponsored deals. Learn more about the assumptions in this section, or view our full disclosure.
5. As of June 30, 2018, none of the Rise Companies Corp sponsored deals have suffered any loss of principal or projected interest; however, there can be no assurance that such performance will continue in the future.
5. As of June 30, 2018, none of the Rise Companies Corp sponsored deals have suffered any loss of principal or projected interest; however, there can be no assurance that such performance will continue in the future.
Explore the full list of deals originated by the sponsor.
Literature
Download these resources to learn more about the Fund. Investors should talk to their
tax and financial advisors about how it can fit into their overall investment strategy.
External link resources
-
Treasury, IRS Announce First Round Of Opportunity Zones Designations For 18 States
US Treasury Department -
Opportunity Zone Resources and Map
Economic Innovation Group -
Opportunity Zones Frequently Asked Questions
US Internal Revenue Service
Top questions
What is an Opportunity Fund?
An Opportunity Fund is a new investment vehicle created as part of the Tax Cuts and Jobs Act of 2017 to incentivize investment in targeted communities called Opportunity Zones.
What are Opportunity Zones?
Opportunity Zones are census tracts designated by state and federal governments targeted for economic development.
Why invest in Opportunity Funds?
Opportunity Funds allow investors to defer federal taxes on any recent capital gains until December 31, 2026, reduce that tax payment by up to 15%, and pay as little as zero taxes on potential profits from an Opportunity Fund if the investment is held for 10 years.
What are the annual fund fees?
| Up-front fees / commissions | None |
| Annual investment management fee | 0.75% |
| Annual tax and accounting fee | 0.45% |
| Annual carried interest / promote | 15% over 8% return |
For a full description of additional fees that each investment may incur, please see the private placement memorandum.
