Cantor Fitzgerald Registers $1 Billion REIT Offering
Cantor Fitzgerald, a global financial services firm, is launching a $1 billion non-traded REIT – Rodin Global Property Trust Inc., according to a recent filing with the Securities and Exchange Commission.
Cantor’s long-rumored entry into the space follows on the heels of another institutional giant’s REIT launch, The Blackstone Group (NYSE: BX) – whose Blackstone Real Estate Income Trust was declared effective last month.
Blackstone, and now Cantor, are entering the sector at a time of decreased fundraising due to the implosion of Nicholas Schorsch’s ARC empire and significant regulatory changes. However, many see the introduction of major institutional players as a positive harbinger for the future of the industry as the ARC scandals fade from memory and the market adjusts to the new realities of FINRA’s 15-02 and the Department of Labor’s fiduciary standard.
Rodin Global Property Trust Inc. intends to invest primarily in single-tenant net leased commercial properties located in the United States, United Kingdom and other European countries, and will offer three classes of common stock: class A, class T and class I shares. The minimum permitted purchase is $2,500.
Until the company determines its net asset value, class A shares will be offered for $26.32 and include a 6 percent selling commission and a 3 percent dealer manager fee. Class T shares will be sold for $25.52 and include a 3 percent selling commission, a 3 percent dealer manager fee, and an annual distribution fee of 1 percent. Class I shares are priced at $25.00 and include a 1.5 percent dealer manager fee and no selling commissions.
The REIT’s sponsor, Cantor Fitzgerald Investors LLC, has agreed to pay up to 4 percent of the underwriting compensation consisting of 1 percent for selling commissions and the 3 percent dealer manager fee for class A and class T shares. For class I shares, the sponsor has agreed to pay the 1.5 percent dealer manager fee.
Cantor Fitzgerald operates through four business lines: capital markets and investment banking; inter-dealer brokerage; real estate brokerage and finance; and private equity. The company’s real estate brokerage and finance business principally consists of commercial real estate brokerage and finance services, conducted by Newmark Grubb Knight Frank and Cantor Commercial Real Estate. The REIT said that its affiliation with Cantor provides it with unique insight and in-depth knowledge of global financial markets and local real estate dynamics, while its advisor’s affiliation with Newmark provides access to potential investment opportunities, many of which it believes will not be available to competitors.
Michael Lehrman, a former managing director at Credit Suisse and co-founder of CCRE, was named chairman and chief executive officer of Rodin Global and its advisor. Lehrman previously served as the global head of real estate at BGC Partners (NYSE: BGCP) and was involved in the acquisition and integration of Grubb & Ellis and Newmark & Co.
Kenneth Carpenter was named president of the REIT and its advisor, and Steve Bisgay will serve as its chief financial officer, treasurer, and director.
Cantor Fitzgerald & Co will serve as the REIT’s dealer manager.
