WASHINGTON, DC—Well, that didn't take long. Actually, that didn't even take a full morning. "That" refers to the oversubscribed sell out of locally-based Fundrise's new e-REIT for qualified investors. Four hours after it opened it doors it was oversubscribed by 403%, according to an email by CEO Ben Miller.
Fundrise first gave prospective investors a peek of what it had been working on for the past year or so in a regulatory filing at the end of November.
"We expect to be one of the first non-exchange traded REITs offered directly to investors solely over the Internet, and the first available to both accredited and non-accredited investors," the filing said.
Because it doesn't charge or pay any broker-dealer distribution fees, investors save approximately 70 percent to 90 percent in upfront expenses as compared to a traditional non-exchange traded REIT, Fundrise said in its filing.
In a way the excitement over the e-REIT was to be expected: there were 16,000 people on the company's waitlist, according to Miller. But even Miller, who's seen first hand how quickly an investment can be snapped up, was taken aback by the speed at which the e-REIT was sold.
In November, a $1.6 million Fundrise project sold out in 2 hours and 22 minutes for a total of $11,000 per minute.
The investment rate for the e-REIT clocked in at $21,428 per minute.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
