The offering is for up to $200 million in shares of common stock in Rastegar Opportunity REIT, Inc. (the “REIT”) pursuant to Rule 506(c) of Regulation D.
AUSTIN, Texas, Jan. 20, 2021 (GLOBE NEWSWIRE) — Rastegar Property Company, LLC (“Rastegar Property Company”), a technology-enabled private real estate investment firm focused on value-add and development in all asset classes throughout Austin and the Sun Belt region of the United States, today announced the REIT, a $200 million private real estate investment trust offering shares pursuant to Rule 506(c) of Regulation D.
The REIT intends to use the net proceeds of the offering to invest primarily in vintage multifamily and other opportunistic real estate assets throughout the Sun Belt region of the Southern United States. The Sun Belt consists of eighteen states covering the lower third of the United States and includes seven of the ten largest cities, as well as many midsize metropolitan statistical areas.
Vintage multifamily assets combine certain elements of Class A, B and C multifamily properties. Generally, vintage multifamily assets are heavily renovated Class C properties located in the urban core adjacent areas amongst Class A properties that attract Class B level property rents. The REIT expects to employ active management to renovate, reposition, re-lease and/or develop assets to add value.
“We are concerned by public market volatility, and view the current multifamily environment as advantageous and prudent for opportunistic, investments in key technology-centered United States regions designed to hedge against inflation and insulate from global risk,” said Ari Rastegar, Founder and CEO of Rastegar Property Company. “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 onto retail accredited investors through our REIT offering.”
The common stock of the REIT, priced at $100 per share, is expected to be made available through Boustead Securities, LLC, a FINRA member and the dealer manager to the offering.
About Rastegar Property Company
Rastegar Property Company is a technology-enabled private real estate investment firm focused on value-add and development in all asset classes throughout Austin and the Sun Belt region of the United States. As of 2020, Rastegar Property Company and its affiliates have co-invested in or directly own and operate over 13.8 million square feet of real estate across projects in 13 states and 35 cities. Rastegar Property Company specializes in acquiring complex or undervalued assets with opportunities to create value through repositioning, redevelopment, and/or improved operational efficiencies.
This is not an offer to sell securities. An offer to sell shares of common stock in the REIT may be made only pursuant to the Confidential Private Placement Memorandum of the REIT dated November 1, 2020, as supplemented (the “Memorandum”). The information contained herein is qualified in its entirety by the Memorandum and prospective investors must read the Memorandum prior to investing. The offering of shares is being made by means of the Memorandum only to accredited investors who meet minimum accreditation requirements, as well as suitability standards as determined by a qualified broker-dealer or investment advisor. To obtain a copy of the Memorandum, please contact your investment professional or Boustead Securities, LLC at 6 Venture, Suite 395, Irvine, CA 92618 (949-502-4408). Securities offered through Boustead Securities, LLC member FINRA and SIPC. Investments may be speculative, illiquid and there is a risk of total loss. Past performance is not indicative of future results. There is no guarantee that any specific outcome will be achieved.