Republic Real Estate Adds First Reg A+ Offering to its Platform with Streitwise REIT

 

Republic is quickly morphing into an investment crowdfunding platform for every type of vertical. Launched as an early-stage investment platform, Republic now operates verticals for gaming, digital assets, real estate, and more. Today, Republic Real Estate is listing its first Reg A+ offering in partnership with Streitwise and its 1st stREIT Office Inc. – a real estate investment trust (REIT).

“It has always been our intention to make high-quality real estate investing more accessible, and partnering with Republic and being able to introduce Streitwise to their 800,000 users is just another step forward on that journey,” says Eliot Bencuya, the CEO of Streitwise.

According to the real estate investment platform, with the launch of its first Reg A+ offering Republic Real Estate expands its offerings to include institutional-quality commercial properties.

Streitwise’s 1st Streit Office Inc. is a REIT that acquires and manages a portfolio of Class A office buildings throughout the U.S. The offering is seeking up to $45+ million in common shares. The REIT is sponsored by Tryperion Partners, a private real estate investment firm that has collectively underwritten and managed more than $5.5 billion in real estate investments. Since its inception in 2013, Tryperion Partners has sponsored three real estate funds that have raised over $161 million.

Streitwise invests in office buildings said to be leased to credit-quality tenants. The REIT owns two Class A office buildings purchased for approximately $76 million, including the 290,000 square foot Panera Bread Headquarters in St. Louis, Missouri, and the 142,000 square foot Allied Solutions Building near Indianapolis, Indiana.

According to the offering page, the dividend-paying security is generating a decent return:

“We have previously and continue to expect to pay dividends on a quarterly basis. Our most recent dividend payment of $0.21 per common share, made in October 2020, equates to an annualized rate of 8.34% on the current share price. Historically, the dividend payment since 2017 has averaged out to be 9.66%, with a target of 8-9% going forward.”

The offering circular, that must be qualified by the SEC, may be viewed here.

Under Reg A+ an issuer may raise up to $50 million – an amount that will move higher ($75 million) in 2021. Both accredited and non-accredited investors may invest in Reg A+ securities. If you are outside the US, the security is also open to non-US investors. To participate in the REIT there is a minimum investment of just $1007 (at $10.07 a share).

“While 55% of Americans own stocks, only 5% of Americans have access to private investments in alternative asset classes like real estate. A fund like this opens up this opportunity to a broad swath of our population that has historically been precluded from private funds like these,” says Janine Yorio, co-head of the real estate group at Republic.

Jesse Stein, co-head of the real estate group at Republic, says tor the past few years, Reg A+ has been a very viable way for high-quality real estate sponsors to raise a meaningful amount of capital from individual investors.

“We believe that this market will continue to grow and we plan for Republic to be a major player fueling that growth.”

 


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