The real estate investment platform Fundrise announced that it recently acquired 146 rental homes in the Treeline Trails community of Jacksonville, Florida. The purchase was made by a joint venture between two Fundrise-sponsored funds, the Fundrise Interval Fund, which was backed by Goldman Sachs Group Inc. GS last year with a $300 million credit facility, and the Growth eREIT VII.
The joint venture acquired the community for approximately $55.9 million and, according to Fundrise, approximately 90% of the homes were already occupied at the time of acquisition.
Unlike the Wall Street funds that have been purchasing large portfolios of rental properties throughout the country, the Fundrise Interval Fund was designed for retail investors, allowing non-accredited investors to participate with as little as $10 through a Reg A offering.
The company has been investing heavily in the single-family rental space, especially in Sunbelt states such as Florida. So far in 2022, Fundrise has purchased at least 467 single-family rental homes across Florida, South Carolina, Arizona and Las Vegas.
A portfolio update posted on the Fundrise website about the latest acquisition states “At a strategic level, this investment fits within our affordably-priced Sunbelt apartment / rental housing thesis. From millennials to retirees, a broad group of Americans has been taking part in a migration from northern to southern states over the past decade, driving continued demand for well-priced, well-located real estate, and supporting steady returns for disciplined investors.”
The community of homes in Jacksonville was acquired from Mainstreet Renewalwhich completed construction at the community in December 2021. The community consists of three-, four-, and five-bedroom homes, each with its own attached garage and fenced yard.
According to data from Redfin, single-family homes in Jacksonville have increased in value by 25.5% year-over-year. Housing Tides shows a 20.4% year-over-year increase in rent price for the area with the addition of 15,300 households in the last 12 months.
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Photo: Courtesy of Fundrise