Trilogy Launches Reg A Bond Offering with Potential 10% Annual Return
Trilogy Multifamily Income & Growth Holdings, a $50 million Regulation A+ bond offering sponsored by Trilogy Real Estate Group, has been fully qualified by the Securities and Exchange Commission.
Trilogy Multifamily Income & Growth Holdings, a $50 million Regulation A+ bond offering sponsored by Trilogy Real Estate Group, has been qualified by the Securities and Exchange Commission and is now open and receiving subscriptions.
Proceeds from the offering will be used primarily to purchase existing Class A and Class B multifamily real estate assets in targeted markets across the United States.
The bonds will be issued in four series with varying maturity dates. The company indicated that each bond offers a total annualized potential return of 10 percent, resulting from a 5 percent current annual coupon paid monthly and additional upside of 5 percent annual contingent interest during the hold period.
“Investors are searching for compelling income in a low-yield environment, and we are excited to expand the opportunity set of fixed income investments,” said Matt Leiter, chief financial officer of Trilogy. “We took great care in structuring this offering to resonate on multiple fronts—current income, total return, defined term, transparency, liquidity and the ease of electronic purchasing through all major clearing firms.”
Regulation A+ Tier II offerings allow companies to sell up to $50 million in securities within a 12-month period and allows solicitation of non-accredited investors. In addition, it requires regular financial filings and annual audited financial statements.
Trilogy said that the fund “has engaged a Big Four accounting firm to provide audited annual financials and UMB as a third-party trustee supervising bond covenants on bond holders behalf.”
Arete Wealth Management serves as the managing broker-dealer for the offering.
Trilogy Real Estate Group is a real estate investment and property management firm with a focus on multifamily apartments and commercial real estate. Since 2002, the principals of Trilogy have completed more than $4 billion in transaction volume, including $670 million of acquisition and financing activity in 2020.
Trilogy has sponsored seven private investment funds and qualified opportunity zone funds and recently began expanding its investment offerings to retail investors via the independent broker-dealer and registered investment advisor distribution channels.
