Inside the First REIT to Go Public Under Regulation A+
- Jun 30, 2016
In today’s competitive net lease environment, companies in the space need to find ways to set themselves apart. David Sobelman is doing just that with his REIT, Generation Income Properties (GIP), which this year became the first REIT to go public under the SEC’s Regulation A+. A net lease veteran, Sobelman co-founded Calkain Cos. in 2005 before founding GIP, which started out as a private fund. But when he went back to investors asking about starting another fund or becoming a publicly traded REIT, they were interested in the latter.
GIP decided to go public under Reg A+ because it proved to be the most “cost-effective” option, Sobelman told CPE. GIP launched an initial round this year for $20 million, which it will use to buy a small amount of properties that fit into the REIT’s conservative investment strategy–those in the top 20 cities with investment-grade tenants that have long-term value and the possibility for rent increases. While the company is starting small, Sobelman said the next round will be much larger, in the $300 to $500 million range, that it will look to raise next year or in 2018.
For more on GIP’s unique fundraising strategy and the state of the net lease sector, check out CPE’s video interview with Sobelman above or on the CPE YouTube page.