Modiv Inc., a publicly registered non-traded crowdfunded real estate investment trust formerly known as RW Holdings NNN REIT Inc. and Rich Uncles NNN REIT Inc., has converted to a Regulation A REIT after being qualified by the Securities and Exchange Commission.
Modiv is offering up to $75 million in shares of Class C common stock to both accredited and non-accredited investors at a minimum investment of $1,000. The company noted that investors will not pay upfront selling commissions in connection with share purchases.
Shares are initially priced at $26.05 each, which is the most recent net asset value per share as of June 30, 2021. The price will be adjusted on a quarterly basis to equal the most recently published NAV per share.
North Capital Private Securities Corporation, a registered broker-dealer, serves as the dealer manager of the offering.
According to the offering circular, in connection with the offering, the REIT will pay North Capital $10,000 per month until the total amount raised in this offering, Modiv’s private offering that terminated on August 12, 2021, and the follow-on public offering that launched in December 2019 and terminated on January 27, 2021, equals $25 million.
After that threshold is reached, the REIT will pay North Capital upfront monthly variable compensation equal to 0.50 percent of the purchase price of each incremental share of Class C common stock sold in this offering in excess of the $25 million threshold.
The total organization and offering expenses, including third-party dealer manager compensation, will not exceed 3 percent of the aggregate gross proceeds raised in this offering, the company stated.
Modiv, a REIT funded through a fintech crowdfunding platform, was founded in 2015 and had approximately $430 million in total assets under management, as of the second quarter of 2021. The company’s portfolio includes 38 commercial properties (12 retail, 14 office, and 12 industrial) totaling 2.3 million square feet.