# EDGAR Filing Document

**Accession Number:** 0001804011
**File Stem:** 0001104659-23-028843
**Filing Date:** 2023-3
**Character Count:** 8022
**Document Hash:** b7ac7242d2a2435e3e3a3fc5fbce718e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-028843.hdr.sgml**: 20230306

**ACCESSION NUMBER**: 0001104659-23-028843

**CONFORMED SUBMISSION TYPE**: 1-U

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Other Events

**FILED AS OF DATE**: 20230306

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FUNDRISE GROWTH EREIT VII, LLC
- **CENTRAL INDEX KEY:** 0001804011
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 844457263
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-U
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00365
- **FILM NUMBER:** 23707824

**BUSINESS ADDRESS:**
- **STREET 1:** 11 DUPONT CIRCLE NW
- **STREET 2:** 9TH FLOOR
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20036
- **BUSINESS PHONE:** 202-584-0550

**MAIL ADDRESS:**
- **STREET 1:** 11 DUPONT CIRCLE NW
- **STREET 2:** 9TH FLOOR
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20036

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-U**

**CURRENT REPORT**

**Pursuant to Regulation A of the Securities Act of 1933**

**February 28, 2023**

(Date of Report (Date of earliest event reported))

**FUNDRISE GROWTH EREIT VII, LLC**

(Exact name of registrant as specified in its charter)

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| | |
|:---|:---|
| **Delaware** | **84-4457263** |
| (State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |

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| | |
|:---|:---|
| **11 Dupont Circle NW, 9th Floor** <br> **Washington, DC** | **20036** |
| (Address of principal executive offices) | (ZIP Code) |

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**(202) 584-0550**

(Registrant's telephone number, including area code)

**Common Shares**

(Title of each class of securities issued pursuant to Regulation A)

**Item 9. Other Events**

**Asset Acquisitions**

*The Village at Sherrills Ford Controlled Subsidiary - Sherrills Ford, NC*

 

On February 28, 2023, we acquired ownership of a "majority-owned subsidiary", FR - The Village at Sherrills Ford, LLC ("<u>The Village at Sherrills Ford Controlled Subsidiary</u>"), for a purchase price of approximately $307,000 which is the stated value of our equity interest in a new investment round in The Village at Sherrills Ford Controlled Subsidiary ("<u>The Village at Sherrills Ford Growth eREIT VII Investment</u>"). Fundrise Real Estate Interval Fund, LLC acquired ownership of the remaining equity interest in the new investment round in The Village at Sherrills Ford Controlled Subsidiary, for a purchase price of approximately $5,831,000 ("<u>The Village at Sherrills Ford Interval Fund Investment</u>" and, together with The Village at Sherrills Ford Growth eREIT VII Investment, "<u>The Village at Sherrills Ford Investment</u>"). The Village at Sherrills Ford Controlled Subsidiary used the proceeds of the The Village at Sherrills Ford Investment to acquire twenty (20) townhomes in the planned The Village at Sherrills Ford subdivision generally located off of Slanting Bridge Rd in Sherrills Ford, NC (the "<u>The Village at Sherrills Ford Property</u>"). The The Village at Sherrills Ford Growth VII eREIT Investment was funded with proceeds from our Offering, and the closing of the The Village at Sherrills Ford Investment and the The Village at Sherrills Ford Property occurred concurrently.

The Village at Sherrills Ford Controlled Subsidiary is managed by us.

Pursuant to the agreements governing The Village at Sherrills Ford Growth eREIT VII Investment, we have authority for the management of The Village at Sherrills Ford Controlled Subsidiary, including The Village at Sherrills Ford Property. In addition, an affiliate of our sponsor earned an acquisition fee of approximately 1.0% of the total purchase price, paid directly by The Village at Sherrills Ford Controlled Subsidiary.

The total purchase price for The Village at Sherrills Ford Property is anticipated to be approximately $29,468,000, an average of approximately $304,000 per home. We anticipate additional hard costs of approximately $55,000 for miscellaneous minor capital expenditures, as well as additional soft costs and financing costs of approximately $1,022,000 bringing the total projected project cost for The Village at Sherrills Ford Property to approximately $30,545,000. The home builder expects to deliver approximately twenty (20) townhomes per month, with full delivery of the ninety seven (97) townhomes expected in June 2023. The Village at Sherrills Ford Property consists of a mix of unit types and floorplans, ranging from 1,600 square foot 3 bedroom, 2.5 bath townhomes to 2,325 square foot 3 bedroom, 2.5 bath townhomes. Professional third-party property management will be installed to manage The Village at Sherrills Ford Property.

The following table contains underwriting assumptions for The Village at Sherrills Ford Property. Assumptions are presented at the asset level. All of the values in the table below are assumptions that we believe to be reasonable; however, there can be no guarantee that such results will be achieved.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Asset Name** | **Stabilized<br> Economic<br> Vacancy** | **Average<br> Annual<br> Rent <br> Growth** | **Average<br> Annual<br> Expense<br> Growth** | **Exit Cap <br> Rate** | **Hold Period** |
| &nbsp;&nbsp;The Village at Sherrills Ford | 5.00% | 3.00% | 2.80% | 5.00% | &nbsp;&nbsp;10 years |

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Please note that past performance is not indicative of future results, and these underwriting assumptions may not reflect actual performance. Any assumptions on the performance of any of our assets may not prove to be accurate. Investing in Fundrise Growth eREIT VII, LLC is an inherently risky investment that may result in total or partial loss of investment to investors.

We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

<u>Safe Harbor Statement</u>

This Current Report on Form 1-U contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in the most recently qualified Offering Statement on Form 1-A filed with the Securities and Exchange Commission ("SEC"), as such factors may be updated from time to time in our periodic filings and prospectus supplements filed with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

**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.

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| | |
|:---|:---|
| FUNDRISE GROWTH EREIT VII, LLC | FUNDRISE GROWTH EREIT VII, LLC |
| By: | Fundrise Advisors, LLC |
| Its: | Manager |
| By: | /s/ Bjorn J. Hall |
| Name: | Bjorn J. Hall |
| Title: | General Counsel |

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Date: March 6, 2023