Real estate industry veteran Harold Hofer, a partner in Bonutto-Hofer Investment Partners, and former CBRE CEO Ray Wirta have launched NEXREGEN Real Estate Investment Trust I, a proprietary Web-based system through which investors can purchase small interests in commercial real estate properties in the real estate investment trust (REIT) format.
Unlike other private REITs that also offer investors small interests in large commercial property holdings, NEXREGEN is designed to utilize a Web-based distribution channel that eliminates the need for commission-based intermediaries. NEXREGEN's real estate strategy is to invest in single-tenant properties leased to creditworthy retailers under long-term net leases.
NEXREGEN REIT I intends to purchase approximately 20 net-leased property investments, if it sells all of its 2.5 million authorized shares (priced at $10 per share). NEXREGEN REIT I has already made its first investment: a minority interest in an existing partnership owning a portfolio of Southern California Del Taco fast-food restaurant properties leased directly to Del Taco.
‘Our goal is to make investing in income-producing commercial real estate an easy and user-friendly experience,’ says Hofer (pictured left). ‘NEXREGEN's founding principle is that all investors should have access to the same real estate opportunities that are typically reserved for high-net-worth individuals and institutions. For as little as $5,000, smaller investors can purchase shares in NEXREGEN REIT I, representing ownership in income-generating properties.’