The compelling benefits of Opportunity Zone investing,
all through our simple, low-cost online platform.
10 – 12%
At least 10 years
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.
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.
The Fundrise Opportunity Fund is currently ramping up and
plans to acquire additional properties in the near future.
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.
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.
Opportunity Zones are census tracts designated by state and federal governments targeted for economic development.
Opportunity Funds allow investors to defer federal taxes on any recent capital gains until December 31, 2026, reduce that tax payment by up to 10%, and pay as little as zero taxes on potential profits from an Opportunity Fund if the investment is held for 10 years.
|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|