Rich Uncles NNN REIT To Explore Potential Acquisition of Affiliated REIT
RW Holdings NNN REIT Inc., a publicly registered non-traded real estate investment trust also known as Rich Uncles NNN REIT Inc., is considering purchasing affiliated REIT Rich Uncles Real Estate Investment Trust I or its real estate portfolio.
RW Holdings NNN REIT Inc., a publicly registered non-traded real estate investment trust also known as Rich Uncles NNN REIT Inc., is considering purchasing affiliated REIT Rich Uncles Real Estate Investment Trust I or its real estate portfolio. The company currently owns an approximate 4.8 percent interest in Rich Uncles REIT I.
Earlier this year, Rich Uncles REIT I hired Cushman & Wakefield as its real estate financial advisor to evaluate strategic alternatives for the company.
Rich Uncles REIT I which reported total investments in real estate properties of $140 million as of September 30, 2018.
The RW Holdings NNN REIT board formed a special committee to evaluate a potential transaction and engaged UBS Investment Bank as its financial advisor and Morris, Manning and Martin LLP as its legal advisor. The special committee has not set a definitive timetable for the completion of its evaluation.
The company does not intend to provide any updates until a decision has been reached.
RW Holdings NNN REIT invests primarily in single-tenant revenue-producing real estate properties leased to creditworthy tenants under long term net leases. The REIT’s offering was declared effective in June 2016, and the company has raised approximately $129.4 million in investor equity, as of the third quarter of 2018. The company oversees a portfolio of 22 properties valued at approximately $200 million, as of September 30, 2018.
Rich Uncles REIT I invests primarily in single tenant corporate properties leased to creditworthy tenants under long-term net leases. Through October 31, 2018, the company had raised approximately $94.2 million in investor equity.
The REIT’s portfolio includes 21 properties, with four office properties representing 34 percent of the portfolio’s net operating income, 11 retail properties representing 33 percent, and six industrial properties representing 33 percent. The portfolio is concentrated in California, with 18 properties generating approximately 90 percent of its net operating income. The company also has two retail properties in Texas and one in Georgia. Investment grade tenants represent 70 percent of the portfolio’s net operating income.
