NEXREGEN Real Estate Investment Trust I has been launched by real estate industry veteran Harold Hofer, backed by former CBRE CEO Ray Wirta. NEXREGEN provides a proprietary web-based system through which investors can purchase small interests in commercial real estate properties, in the real estate investment trust or "REIT" format.
Harold Hofer said that the company’s goal is to make investing in income-producing commercial real estate an easy and user-friendly experience. "NEXREGEN's founding principle is that all investors should have access to the same real estate opportunities that are typically reserved for high net worth individuals and institutions. For as little as $5,000, smaller investors can purchase shares in NEXREGEN REIT I, representing ownership in income-generating properties," added Hofer.
Unlike other private REITs that also offer investors small interests in large commercial property holdings, NEXREGEN utilizes a web-based distribution channel that eliminates the need for commission-based intermediaries. "Typically in other private REITs, 10% of the share price is paid out to broker-dealers in the form of commissions," said Hofer. "Our method of distribution is the internet and our web site. We have eliminated the standard 10% commission. Our shareholders will have a significantly greater percentage of their initial investment actually invested in real estate assets."
"We believe that NEXREGEN will appeal to investors seeking to generate current income, realize opportunities for longer-term value growth at the bottom of the current real estate cycle, and diversify an existing investment portfolio," Hofer said. NEXREGEN plans a 7- to 10-year investment holding period, after which the investments will be sold and the REIT liquidated.
Hofer is a non-practicing lawyer with more than 30 years experience in real estate, and has participated both as a principal and a broker in real estate transactions exceeding $2 billion. Hofer has extensive underwriting and acquisition experience and has asset managed multi-hundred million-dollar portfolios of owned properties. He is NEXREGEN's Managing Principal.
Wirta was the Chief Executive Officer of CBRE (NYSE:CBG), the world's largest real estate services company with 30,000 employees worldwide, for six years.