Real estate investment company Rich Uncles LLC is behind an initial public offering to raise as much as $1 billion for its newly created Rich Uncles REIT Inc.
The Costa Mesa-based company is a crowd-investing platform that aims to make direct real estate investment available to the masses.
How Do REITs Work?
It buys commercial properties and draws investments from qualifying individuals, using the money to pay down its loans. It shares profits with members when it sells a property.
It has more than 11,000 members and 25 properties throughout California.
Rich Uncles is the sponsor of Rich Uncles REIT, which is seeking to qualify as a REIT and is offering 100 million shares of common stock at $10 a share, according to a recent filing with the Securities and Exchange Commission.
Rich Uncles REIT is expected to “use substantially all of the net proceeds from this offering to acquire and manage a portfolio of real estate investments,” particularly in “single-tenant, income-producing corporate properties which are leased to creditworthy tenants under long-term net leases,” according to the filing.
Rich Uncles, which recently moved its corporate address from Newport Beach, was founded by Ray Wirta, chairman of real estate services firm CBRE and an Irvine Company executive, and Harold Hofer, an attorney and a former owner of a boutique real estate firm.