On Monday, ETRE Financial filed with the U.S. Securities and Exchange Commission for an initial public offering of ETRE REIT (proposed ticker is ECAV) on the NASDAQ exchange. Operating as a limited liability corporation, ETRE REIT would allow public investment in individual commercial real estate properties with the properties held as separate real estate investment trusts.
The firm’s first building asset is an office building in downtown Washington, DC., REIT Wrap first reported.
ETRE launched as the first real estate-specific trading platform in beta stage at the end of last year, Commercial Observer previously reported...
Woody Heller, group head of the capital transactions group of Studley in New York, said the IPO would address a long-time concern of REIT investors about having to invest in portfolios rather than individual buildings.
“The challenge has been that the costs to create the investment vehicle are typically too high for individual properties,” he said. “Also, even leased properties need to be operated and re-leased, so the investment requires confidence in the operator as well as the building.
The SEC didn’t respond to a request for comment.
Mr. Heller added: “If you could choose to invest either in individual properties owned by a REIT, or the overall REIT itself, that would be the best of both worlds. It will be interesting to see how this unfolds.”ETRE Financial Files for IPO
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