stREITwise has launched a Regulation A+ IPO for its online commission-free real estate investment with direct investment on its own website. The company’s first Real Estate Investment Trust (REIT) – 1st stREIT Office – seeks to provide a diversified portfolio of institutional-quality office buildings with a revolutionary low-cost structure. Filed as a Regulation A+ offering, the St. Louis 1ststREIT Office invites both accredited and non-accredited investors to participate. There is a minimum investment of $1,000.
“We decided to self-crowdfund as part of our larger strategy to minimize costs and pass that savings on to investors….Publicly-Traded REITs put long-term investors at an immediate disadvantage because their shares are priced at a liquidity premium,” opined stREITwise CEO Jeffrey Karsh. “As a Non-Traded REIT, stREITwise rewards long-term investors by offering cheaper shares while also empowering everyday investors with access to the private real estate market.”
LA-headquarted stREITwise aims to allow the crowd to invest directly into a diversified real estate portfolio “at a fraction of the average cost” by eliminating industry-standard commissions and accepting investments directly on its website. stREITwise also seeks to provide passive, tax-advantaged income in the form of dividends on a quarterly basis.
While Non-Traded REITs typically charge upfront fees of 10-15%, stREITwise caps its upfront fee at just 3% by cutting out the middleman, eliminating financial advisor commissions, and passing the savings on to investors.
“This fee structure will revolutionize real estate investing going forward, both through reduced fees and greater access. By cutting out the middleman, we are truly democratizing real estate, and making it cheaper for everybody,” added Karsh.
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All stREITwise offerings, including 1st stREIT Office, are sponsored by the private real estate investment firm Tryperion Partners, founded by three veteran real estate investors who have reportedly been involved in acquiring and/or managing real estate valued at $5.4 billion over the course of their careers.
“We’ve invested on behalf of high-net-worth and foundation clients for years,” indicated Karsh. “But it’s always been our goal to allow everyday investors to participate in our investment success. It shouldn’t matter how much you have in the bank, anybody should be able to invest in real estate. And stREITwise makes it possible.”
More than just dough… 1st stREIT Office recently raised over $20 million in a private offering to acquire the Panera Bread HQ Property in St. Louis, MO. At 99% occupancy in three separate buildings, the Panera Bread HQ Property includes over 290,000 square feet of Class “A” office space that is leased to many large tenants, including Panera Bread (World HQ), New Balance (Regional HQ), Wells Fargo, Edward Jones and Nationwide Insurance.
With the Panera Bread HQ Property acquisition, 1st stREIT Office has reportedly been able to make 10% annualized dividend distributions to its existing investors. The company seeks to acquire more high-quality, stabilized office buildings in undervalued markets across the United States.
“We are bottom-up value investors, so we’re not limiting ourselves to specific markets,” noted Karsh. “However, the stREITwise executive team has extensive experience investing in places like St. Louis, San Antonio, Phoenix, Minneapolis, Indianapolis and other similar markets with robust fundamentals that we believe compare favorably to the much higher valuations seen in cities like New York or San Francisco.”
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