RW Holdings NNN REIT Inc., a publicly registered non-traded real estate investment trust also known as Rich Uncles NNN REIT Inc., has filed a registration statement for a proposed follow-on offering of $725 million in Class C shares of common stock and $75 million in distribution reinvestment plan shares.
The company plans to use the net proceeds to invest in single-tenant income-producing properties which are leased to creditworthy tenants under long-term net leases. The REIT is externally managed by Rich Uncles NNN REIT Operator LLC and sponsored by BrixInvest LLC.
BrixInvest utilizes an alternate distribution channel that excludes payment of commissions and expense reimbursements to advisory intermediaries.
However, the REIT’s fees include a 3 percent organization and offering expense fee reimbursed to the sponsor, a 3 percent acquisition fee paid to the advisor, a monthly asset management fee paid to the advisor equal to 0.1 percent the total investment value of the assets, and a subordinated participation fee payable to the advisor.
The REIT recently disclosed that it was mulling the purchase of affiliated REIT Rich Uncles Real Estate Investment Trust I or its real estate portfolio. RW Holdings NNN REIT currently owns an approximate 4.8 percent interest in Rich Uncles REIT I.
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 $160 million in investor equity, as of April 30, 2019. The company oversees a portfolio of 22 properties valued at approximately $200 million, as of September 30, 2018.