Fundrise Growth eREIT – Benzinga

The only thing better than consistent returns on an investment are consistent double-digit returns. The Fundrise Growth eREIT has generated double-digit returns every year for investors since 2017. The Growth eREIT focuses on acquiring undervalued commercial real estate with long-term appreciation and upside. The advantage comes from the real estate investment trust’s (REIT’s) strategy of buying small- to mid-sized institutional-grade assets that aren’t large enough to attract the attention of institutional funds.

  • Best for

    Novice Real Estate Investors

While many REITs seek out luxury housing due to high rents, the Growth eREIT is primarily focused on acquiring housing for the workforce. This REIT specifically seeks assets where there is a growing labor force and resulting strong demand for quality affordable housing. The Growth eREIT also specifically looks for undervalued assets that can be acquired at less than current market value by building them from scratch.

Once the assets are acquired, unit upgrades and improved management combine to make them attractive to new tenants in the area. The low purchase price of the assets means that they are price competitive in their respective markets, even after rising rents. Another key part of the Growth eREIT strategy is securing fixed rate, long-term funding for all assets. This method helps maintain consistent returns despite recent rate hikes by the Federal Reserve.

Growth eREIT portfolio

Growth eREIT’s current portfolio consists of 11 multi-family properties. Almost all assets fall into the category of value-added or core-plus strategies. The asset mix is ​​about 55/40 between value-added and core-plus and a fixed-income asset. Assets are mostly concentrated in the US Sunbelt or other cities where workers move to escape the high cost of living. Examples of Growth eREIT portfolio assets include

  • Stabilized apartments: Jacksonville, Florida
  • Stabilized apartments: Las Vegas, Nevada
  • Flats stabilized: Hollywood, Florida
  • Apartment Renovation: Tampa, Florida
  • Stabilized apartments: Charlotte, North Carolina

Fundrise Growth eREIT Statistics

The Growth eREIT was established in 2016. Many of the fund’s assets have stabilized and are generating strong earnings, leading to strong appreciation across the fund. Fundrise investors must have basic account status, which means the minimum investment in the Growth eREIT is $5,000. Although the geographical focus of the REIT is national, most of the assets are concentrated in the solar belt.

Other relevant statistics include:

  • Current net asset value/share: $20.75
  • Current dividend: 2.17%
  • Tax declaration: 1099-DIV
Image source: Fundrise website

Final Thoughts

If you had invested $10,000 in the Fundrise Growth eREIT when it was created in 2016, it would be worth $20,750 today. Since 2017, the REIT has posted double-digit returns every year. Current yields through July 2022 are 9.2%. Overall, the Growth eREIT has done an admirable job of achieving its investment goals. However, investing in REITs involves risk and returns are not guaranteed.

Stabilized assets are doing well and it is expected, although not certain, that assets being refurbished will also generate an impressive combination of cash flow and appreciation. Overall, the Growth eREIT has done a commendable job of achieving its stated investment goals. If you’re looking for a REIT to invest in for wealth building and passive income, Fundrise Growth REIT should be at the top of your list.


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