Have you ever considered an investment offering and lost the chance to buy into it because it closed while you were still doing your due diligence? Every investor has a few deals that get away.
If you had been considering the Fundrise Growth eREIT (real estate investment trust) VI, but it closed before you could jump in, you’re in luck. The Growth eREIT VI is ramping back up and accepting investor contributions again.
This is a testimonial in partnership with Fundrise. We earn a commission from partner links on Benzinga.com. All opinions are our own.
The Growth eREIT VI is a growth-oriented fund that takes a different strategy than traditional private REITs. While most REITs focus on institutional-sized investments because of their earning potential, the Growth eREIT VI targets high-quality assets with growth potential that cost less than $10 million.
This strategy allows the fund to pick assets in a far less competitive environment than most REITs operate in. Investors benefit from this strategy in two ways: 1. The assets targeted by the fund fund are below the radar, which makes them cheaper. 2. The assets purchased by the fund still have solid upside and growth potential. Simply put, investors get a lot of bang for their buck with this strategy.
Historical Performance
The Growth eREIT VI was created in December 2019 with an opening net asset value (NAV) per share of $10. For almost all of 2020, the assets in the fund were stabilizing themselves, and there was no increase in NAV value for the year. However, 2021 saw a solid gain of almost 20% resulting from strong property appreciation as the stabilized assets began performing.
It closed that year with an NAV of $11.89. 2022 has seen continued gains, and the NAV has increased to $12.16. That means investors in the Growth eREIT VI have netted a return of 21% in just under three years. This track record is certainly strong, and as the fund ramps back up to seek new assets, investors may want to consider getting on the Growth eREIT VI train before it leaves the station again.
Portfolio
Currently, there are no assets in the Growth eREIT VI portfolio. However, the fund is ramping back up, which means the general partners are actively scouting for deals to purchase with investor capital.
Current Stats
Some current stats for the Growth eREIT VI:
- Inception date: December 2019
- Phase: Ramping up
- Objective: Growth
- Geographic focus: National
- Current NAV per share: $12.16
- Current dividend yield: 0%
- Tax reporting: 1099-Div
Final Thoughts
The Fundrise Growth eREIT VI has already shown its ability to accomplish its key mission of growing asset value and delivering returns for investors. As the fund begins ramping up again and looks for new assets, investors who missed out on the last go around have another opportunity to put their money in a REIT with a solid performance history.
As always, investors should carefully consider the risks of investing and remember that the Growth eREIT VI’s past performance is not a guarantee of future profits. With that said, the Growth eREIT VI’s strategy of targeting noninstitutional assets with upside is still solid. When you combine that strategy with the existing track record, the Growth eREIT VI appears to be another solid offering that is worthy of strong consideration.
