Private real estate investment firm Rastegar Property Co. has launched a $200 million private real estate investment trust to invest in vintage multifamily properties in the nation’s Sun Belt region.
The Rastegar Opportunity REIT intends to use the net proceeds of the offering to invest in vintage multifamily assets—generally heavily renovated Class C properties in the urban core adjacent to Class A properties and attracting Class B property rents—and other opportunistic real estate assets throughout the Sun Belt, which includes 18 states covering the lower third of the nation. In addition, the REIT plans to employ active management to renovate, reposition, release, and/or develop assets to add value.
The offering is for up to $200 million shares of common stock, pursuant to Rule 506(c) of Regulation Day. The common stock of the REIT is priced at $100 per share and is expected to be made available through Boustead Securities, a FINRA member and the deal manager to the offering.
“We are concerned by public market volatility, and view the current multifamily environment as advantageous and prudent for opportunistic investments in key technology-centered U.S. regions designed to hedge against inflation and insulate from global risk,” said founder and CEO Ari Rastegar. “We’ve uncovered off-market deep value in vintage multifamily complexes across Austin and Texas and throughout the Sun Belt states and are delighted about the opportunity to pass that value on to retail accredited investors through our REIT offering.”
As of 2020, the Austin-based firm and its affiliates have co-invested in or directly own and operate more than 13.8 million square feet of real estate across projects in 35 cities and 13 states.
