Rastegar Property Company LLC, a private real estate investment firm, has launched the Rastegar Opportunity REIT Inc., a Regulation D real estate investment trust that plans to invest in vintage multifamily and other opportunistic real estate assets throughout the Sun Belt region of the Southern United States. The 506(c) private placement offering seeks to raise up to $200 million in shares of common stock.
The Sun Belt consists of eighteen states covering the lower third of the United States and includes seven of the 10 largest cities, as well as many midsize metropolitan statistical areas.
Vintage multifamily assets combine certain elements of Class A, Class B and Class C multifamily properties. Generally, vintage multifamily assets are heavily renovated Class C properties located in the urban core adjacent areas among Class A properties that attract Class B level property rents, the company explained.
The REIT expects 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 chief executive officer. “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.
Rastegar Property Company focuses on value-add and development in all asset classes throughout Austin and the Sun Belt region of the United States. As of 2020, Rastegar 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 13 states and 35 cities.