Fundrise, which runs a crowdfunding real-estate investing platform, said Wednesday that is launching its first e-REIT.
The Fundrise real estate investment trust will invest in a diverse portfolio of U.S. commercial properties, such as apartments, shopping centers and office buildings with the aim of generating cash flows to investors in regular dividends, according to the company.
The filing for the $50 million REIT, now available on EDGAR, is "the largest-ever Regulation A+ [offering] filed under the new Jumpstart Our Business Startups Act rules," according to the company.
"Today is a massively historic day for the Fundrise team — the result of over four years of work!" said CEO and co-founder Ben Miller, in a statement. "Soon anyone in the country will be able to access the same investments as billion-dollar institutional funds but with roughly 1/10th of the fees, heightened transparency, and low investment minimums of $1,000."
Under the provisions of Title III of the JOBS Act, approved by the SEC on Oct. 30, investors with annual income or net worth of less than $100,000 can invest up to $2,000 (or up to 5% of the lesser of their annual income or net worth); the limit for those with more than $100,000 is 10% of the lesser of either their annual income or net worth.
The rules allow companies to raise up to $1 million through crowdfunding in a 12-month period.
"There is a great deal of enthusiasm in the marketplace for crowdfunding, and I believe these rules and proposed amendments provide smaller companies with innovative ways to raise capital and give investors the protections they need," SEC Chair Mary Jo White said in a statement announcing the decision to permit crowdfunding.
