# EDGAR Filing Document

**Accession Number:** 0001824154
**File Stem:** 0001213900-25-093881
**Filing Date:** 2025-9
**Character Count:** 16203
**Document Hash:** 71ce9aa351beff67c1962189ca0a9489
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-093881.hdr.sgml**: 20250930

**ACCESSION NUMBER**: 0001213900-25-093881

**CONFORMED SUBMISSION TYPE**: 1-SA

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250930

**DATE AS OF CHANGE**: 20250930

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DF Growth REIT II, LLC
- **CENTRAL INDEX KEY:** 0001824154
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 852600369
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-SA
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00480
- **FILM NUMBER:** 251360182

**BUSINESS ADDRESS:**
- **STREET 1:** 750 B ST.
- **STREET 2:** SUITE 1930
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92101
- **BUSINESS PHONE:** 858-430-8528

**MAIL ADDRESS:**
- **STREET 1:** 750 B ST
- **STREET 2:** SUITE 1930
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92101

**UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549**

**FORM 1-SA**

**☒ SEMIANNUAL REPORT PURSUANT TO REGULATION A**

**or**

**☐ SPECIAL FINANCIAL REPORT PURSUANT TO REGULATION A**

**For the semi-annual period ended June 30, 2025**

**DF Growth REIT II, LLC** 

(Exact name of registrant as specified in its charter)

**Delaware**

(State or other jurisdiction of incorporation or organization)

**750 B Street Suite 1930 San Diego, CA 92101**

(Address of principal executive offices)

**85-26000369**

(IRS Employer Identification Number)

Issuer's telephone number, including area code

**858.430.8528** 

 

 

*The use of the terms the "Company," "we," "us," or "our" in this report refer to DF Growth REIT II, LLC, unless the context indicates otherwise.*

 

**ITEM 1** 

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes included in this report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in these forward-looking statements.

Unless otherwise indicated, the latest results discussed below are as of June 30, 2025. The financial statements included in this filing as of and for the six months ended June 30, 2025 are unaudited and may not include year-end adjustments necessary to make those financial statements comparable to audited results, although in the opinion of management all adjustments necessary to make interim statements of operations not misleading have been included.

**Operating Results** 

The Company was formed on August 6, 2020 and began operating its investment portfolio on December 10, 2021 when it completed its first property acquisition. As of June 30, 2025, the Company had invested a total of $9,382,393 in equity in 5 projects managed by our Sponsor and $113,859 in debt in 1 project managed by our Sponsor as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Property** | **Ownership<br> Percentage** | **Investment<br> Type** | **Investment Amount\*** |
| Avalon I (aka) Willow Ridge | 1.28 | Equity | $131693 |
| Avalon II (aka NCP Dove) | 29.72 | Equity | $5051716 |
| Mission Villas | 16.94 | Equity | $1842278 |
| Swaying Oaks | 41.04 | Equity | $1550935 |
| Durant Ave. | 31.69 | Equity | $793994 |
| Avalon II (aka NCP Dove) | N/A | Debt | $113859 |
| **TOTAL** |  |  | $**9496252** |

---

\* Investment Amount represents the net amount contributed to the specified property or related fees or expenses and does not include unrealized losses or gains or other adjusting journal entries.

**Revenue**

The Company received no revenue during the period ending June 30, 2025. The Company sold a portion of its interest in Durant Ave. for $92,617, which reduced the Total Real Estate Equity Investments, Net for the period ending June 30, 2025 accordingly.

**Expenses**

Expenses (consisting entirely of general and administrative expenses) during the period ending June 30, 2025 were $40,134. Our net loss for the period was $40,134, compared to a net loss of $9,413 for the period ending June 30, 2024.

**Liquidity and Capital Resources**

We require capital to fund our investment activities and operating expenses. Capital sources include net proceeds from our Offering, cash flow from operations, net proceeds from asset sales, borrowings under credit facilities and other term borrowings. On June 9, 2022, our Offering whereby we sought to raise $75,000,000 was suspended and we raised no additional equity capital after that date. As of June 30, 2025, we had raised approximately $11.3 million; we had deployed approximately $9.47 million in 6 investments; and we had approximately $15,567 in cash and cash equivalents, compared to $8,902 in cash and cash equivalents for the period ended December 31, 2024.

**Trend Information** 

The US Multifamily and Real Estate markets were subject to the same macroeconomic forces that affected all asset classes in the first half of 2025. Short term headwinds included continuing high interest rates and the treatment of federal surplus/deficit spending and inflation as measured by the Consumer Price Index (CPI), but upward pressure on the job market has spawned hope for multiple interest rate cuts later in 2025.

We anticipate rent growth to return in select markets before the end of 2025 once new construction deliveries are fully absorbed. Sustained high interest rates will likely continue to impact valuations as multifamily transaction prices will begin to come more in line with the increased cost of capital until significant rate cuts have been absorbed by the market.

**ITEM 2**

**OTHER INFORMATION** 

***SEC Investigation and Related Litigation***

 

As previously disclosed, in November 2021 the SEC began an investigation of the Company and in February 2022 the SEC initiated a related enforcement action. The SEC alleged that the Company had failed to comply with two technical requirements of Regulation A in its offering to investors and had included inaccurate statements about the Company on the DiversyFund website. None of the SEC's complaints alleged any intentional wrongdoing or financial or accounting violations, and accurate information about the offering was available to investors at all times. On June 9, 2023 the SEC issued a settlement order in which the Company agreed to a permanent suspension of its offering. No fines or penalties were administered by the SEC. The SEC concluded its investigation of the Company on August 9, 2023 and announced that it recommended no further actions against the Company or any of its affiliates.

In December 2022 attorneys for three shareholders in the Company brought a putative class action against the Company; DF Growth REIT I, LLC; DiversyFund, Inc., the Sponsor; and Craig Cecilio and Alan Lewis as principals of DiversyFund, Inc. The suit largely piggybacked on claims raised by the SEC in its inquiry of REIT II. The shareholder action alleged that the named shareholders were misled and sought compensation for their losses as well as reimbursement of all attorneys' fees, costs and interest on those fees. Attorneys also sought to have their claim certified as a class action on behalf of all investors in the Company. The Company engaged defense counsel well experienced in defending securities litigation and securities class actions in order to vigorously contest these claims, which we believe are wholly without merit. In May 2023, the Company filed a motion to dismiss all claims and in April 2024 the judge dismissed the investor suit, noting that investors had suffered no loss. Attorneys for the plaintiffs filed an amended complaint and the Company again responded with a motion to dismiss all claims. On June 8, 2025 the court issued a ruling that dismissed most claims as implausible or insufficiently supported by facts but permitted three claims to continue. Our counsel believes that the court made errors in its evaluation of the remaining claims and that those claims will be rejected at trial should the case not settle beforehand. The parties are now waiting to schedule the beginning of discovery. It is typically difficult to predict the course of contested litigation, and the potential impacts on the Company, its affiliates, and/or their investors and employees range from the cost of litigation, including fees for the Company's attorneys as well as for those of plaintiffs' attorneys should the court rule against the Company, to significant economic consequences. The Company has already incurred significant legal costs and expenses defending against this action; to date, these costs and expenses have been paid by the Sponsor.

**Recent Developments**

***Investments***

No new real estate investments were acquired or sold by the Company since June 30, 2025, other than additional investments into assets listed in the table above.

 ****

**ITEM 3** 

**Financial Statements** 

**DF Growth REIT II, LLC** 

**Index**

---

| | |
|:---|:---|
|  | **Page** |
| **[Balance Sheet](#a_001)** | 4 |
| **[Statement of Operations](#a_002)** | 5 |
| **[Statement of Cash Flows](#a_003)** | 6 |
| **[Statement of Members' Equity](#a_004)** | 7 |

---

**DF Growth REIT II, LLC<br> Balance Sheet<br> As of June 30, 2025 (Unaudited) and December 31, 2024 (Audited)**

---

| | | |
|:---|:---|:---|
|  | **Six Months <br> Ended<br> June 30,<br> 2025** | **Year <br> Ended <br> December 31,<br> 2024** |
| **ASSETS** | | |
| Cash and Cash Equivalents | $15567 | $8902 |
| Due From Related Party | 117643 | 117643 |
| Total Real Estate Equity Investments, Net | 5241414 | 5302621 |
| Real Estate Debt Investments | 113859 | 113859 |
| **Total Assets** | $**5488483** | $**5543025** |
| **LIABILITIES AND MEMBERS' EQUITY** |  |  |
| **LIABILITIES** |  |  |
| Accounts Payable and accrued expenses | $91824 | $106232 |
| Related Party Payable |  |  |
| Dividend Payable |  |  |
| Subscription received in advance |  |  |
| Redemptions Payable |  |  |
| **Total Liabilities** | $**91824** | $**106232** |
| **MEMBERS' EQUITY** |  |  |
| Equity: |  |  |
| Common Shares $10 par value; 5,000,000 shares authorized ; 1,108,312 shares issued and outstanding, net of offering costs as of June 30, 2024 | $11346778 | $11346778 |
| Accumulated Deficit | (5950119) | (5909985) |
| **Total Members' Equity** | $**5396659** | $**5436793** |
| **Total Liabilities and Members' Equity** | $**5488483** | $**5543025** |

---

**DF Growth REIT II, LLC<br> Statement of Operations<br> For the periods ended June 30, 2025 (Unaudited) and June 30, 2024 (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Six Months <br> Ended<br> June 30,<br> 2025** | **Six Months <br> Ended<br> June 30,<br> 2024** |
| **REVENUES** | | |
| Rental Property Revenue | $- | $- |
| Realized Investment Income | $— |  |
| Other Income |  |  |
| &nbsp;&nbsp;&nbsp;**TOTAL REVENUES** | $— | $- |
| **EXPENSES** |  |  |
| Operating Expenses |  |  |
| General and Administrative Expenses | $40134 | $9413 |
| Fund Management |  |  |
| &nbsp;&nbsp;&nbsp;Total Operating Expenses | $40134 | $9413 |
| Investing Expenses |  |  |
| Unrealized Investment Loss |  |  |
| &nbsp;&nbsp;&nbsp;Total Investing Expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL EXPENSES** | $40134 | $9413 |
| **NET GAIN/LOSS** | $(40134) | $(9413) |

---

**DF Growth REIT II, LLC<br> Statement of Cash Flows<br> For the periods ended June 30, 2025 (Unaudited) and June 30, 2024 (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months <br> Ended<br> June 30,<br> 2025** | **For the Six Months <br> Ended<br> June 30,<br> 2024** |
| **OPERATING ACTIVITIES** | | |
| Net Loss | (40134) | (9413) |
| Adjustments to Organization Costs |  |  |
| **Change in Assets and Liabilities** |  |  |
| Net increase/decrease in accounts receivable and other assets |  |  |
| Net increase/decrease in accounts payable and accrued expenses | (14408) | (17333) |
| Net Increase/decrease in due to related party | - |  |
| ***Net cash used in operating activities*** | *(54542)* | *(26746)* |
| **INVESTING ACTIVITIES** |  |  |
| Investment in real estate equity investments | 61207 | 25000 |
| Investment in real estate debt investments |  |  |
| ***Net cash used in Investing activities*** | *61207* | *25000* |
| **FINANCING ACTIVITIES** |  |  |
| Proceeds from the issuance of common stock, net of syndication costs |  |  |
| Decrease in Liability to Sponsor |  |  |
| Change in Notes and Interest Payable |  |  |
| Paid to investors for Dividends |  |  |
| ***Net cash provided by financing activities*** |  |  |
| ***Net increase in cash and cash eqivalents*** | 6665 | (1746) |
| Cash and cash equivalents, beginning of period | 8902 | 21922 |
| **Cash and cash equivalents, end of period** | $**15567** | $**20176** |

---

**DF Growth REIT II, LLC<br> Statement of Members' Equity<br> For the year ended December 31, 2024 (Audited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Class A Investor Shares** | **Class A Investor Shares** | | |
|  | **Shares** | **Amount** | **Accumulated**<br>**Deficit** | **Total**<br>**Equity** |
| January 1, 2024 | 1134678 | $11346778 | $(4802181) | $6544597 |
| Proceeds from issuance of class A shares |  |  |  |  |
| Distributions declared on class A shares |  |  |  |  |
| Net Gain |  |  | (1107804) | (1107804) |
| Balance as of December 31, 2024 | 1134678 | $11346778 | $(5909985) | $5436793 |

---

**DF Growth REIT II, LLC<br> Statement of Members' Equity<br> For the six months ended June 30, 2025 (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Class A Investor Shares** | **Class A Investor Shares** | | |
|  | **Shares** | **Amount** | **Accumulated**<br>**Deficit** | **Total**<br>**Equity** |
| January 1, 2025 | 1134678 | $11346778 | $(5909985) | $5436793 |
| Proceeds from issuance of class A shares |  |  |  |  |
| Distributions declared on class A shares |  |  |  |  |
| Net Gain |  |  | (40134) | (40134) |
| Balance as of June 30, 2025 | 1134678 | $11346778 | $(5950119) | $5396659 |

---

**ITEM 4**

**Exhibits**

---

| | |
|:---|:---|
| Exhibit 1A-2A | [Certificate of Formation\*](https://www.sec.gov/Archives/edgar/data/1824154/000121390020044386/ea131703ex1a-2a_dfgrowth.htm) |
| Exhibit 1A-2B | [Limited Liability Company Agreement dated August 20, 2020\*](https://www.sec.gov/Archives/edgar/data/1824154/000121390020044386/ea131703ex1a-2b_dfgrowth.htm) |
| Exhibit 1A-2C | [Authorizing Resolution of the Company\*](https://www.sec.gov/Archives/edgar/data/1824154/000121390020044386/ea131703ex1a-2c_dfgrowth.htm) |
| Exhibit 1A-6A | [Investment Agreement\*](https://www.sec.gov/Archives/edgar/data/1824154/000121390020044386/ea131703ex1a-6a_dfgrowth.htm) |
| Exhibit 1A-6B | [Management Services Agreement by and between the Company and the Manager dated August 20, 2020\*](https://www.sec.gov/Archives/edgar/data/1824154/000121390020044386/ea131703ex1a-6b_dfgrowth.htm) |

---

\* Filed as an exhibit to the Company's Offering Statement on Form 1-A (File No. 024-11394) and incorporated by reference herein

**Signatures**

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on September 30, 2025.

**DF Growth REIT II, LLC** 

---

| | |
|:---|:---|
| By: | DF Manager, LLC, as Manager |
| By: | DiversyFund, Inc., as Manager |
| By | /s/ Craig Cecilio |
| Chief Executive Officer | Chief Executive Officer |

---

Pursuant to the requirements of Regulation A, this report has been signed by the following persons in the capacities and on the dates indicated.

---

| |
|:---|
| /s/ Craig Cecilio |
| Director and Chief Executive Officer of DiversyFund, Inc. September 30, 2025. |

---

---

| |
|:---|
| /s/ Alan Lewis |
| Director and Chief Investment Officer of DiversyFund, Inc. September 30, 2025 |

---