Proptech firm Fundrise uses Reg A+ filings

 A simple, low-cost real estate investment platform that combines technology with active real estate private equity management, offering access to investments for both accredited and non-accredited investors, Fundrise, has recently filed new forms with the Securities and Exchange Commission (SEC). 

One of the requirements of using Reg A+ is a heightened degree of disclosure for the issuing entity. The most recent offering circulars provide some insight into the operations of Fundrise.

The current (preliminary) filing is for the Fundrise Income eREIT III which is seeking the max amount under Reg A+ of $50 million.

The Offering Circular states:

“The eREIT Programs were launched in December 2015 with the qualification of the Regulation A offering of the Income eREIT. Our sponsor and its affiliates are responsible for origination, due diligence, structuring, closing, acquiring, and asset management of all investments and loans made under the eDirectTM Programs. As of December 31, 2017, our sponsor had facilitated or originated approximately 70 real estate assets in its eREIT Programs with aggregate asset values of approximately $1.4 billion, consisting of approximately $114 million of commercial real estate loan assets, and $1.3 billion of investments in commercial real estate assets (primarily through common equity investments and majority-owned subsidiaries with rights to receive preferred economic returns or joint ventures).

Fundrise says that through December 31, 2017, the five eREITs had collectively raised approximately $225 million.

Fundrise launched its platform as a real estate crowdfunding platform that provided access to individual property investments. Over time, it switched to a fund focused investment site seeking a more efficient path to scale its service and limit expenses.

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