New Online Auction Platform Gives Non-Traded REIT Shareholders and
Investors Simple, Secure and Transparent Way to Buy and Sell Shares
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--
REITbid
today announced a new online auction platform that matches buyers and
sellers of shares in existing non-traded public real estate investment
trusts (REITs). This new program is powered by an advanced and proven
online auction technology (FRE.com)
that is secure, easy to use, transparent and designed to create
liquidity in what are typically considered illiquid assets.
Non-traded REITs have issued nearly $80 billion of equity during the
past ten years to more than 2 million shareholders1, a number
that is projected to rise over the next few years. As the volume of
investors increases, so does the demand for shareholders who need to
liquidate their shares. With approximately 2/3 of today’s top closed
non-traded REITs unable to meet the liquidity demands of their
shareholders2, those seeking liquidity often turn to low-ball
mini-tender offers from predatory investment firms. The Securities
and Exchange Commission warns “mini-tender offers have been
increasingly used to catch investors off guard” when it comes to
determining the value of their shares.
The REITbid platform was founded by a team of senior real estate
executives led by William Lange and financed by Ray Wirta. Lange has
more than 35 years experience in real estate auction marketing and is
chairman of the LFC Group of Companies, a pioneer in online auction
solutions. Wirta has more than 40 years experience in commercial real
estate and is the former chief executive officer and a current director
of CB Richard Ellis (NYSE:CBG). The team made the decision to create
REITbid based on industry-wide demand for a viable solution for
achieving fairly priced liquidity in non-traded REIT shares.
“Shares of existing non-traded REITs may provide attractive investment
opportunities that focus on current dividend yield and appreciation
potential,” said William Lange, REITbid principal. “However, a drawback
to investing in non-traded REITs has been a lack of liquidity. REITbid
not only helps to resolve this issue with an easy-to-use online auction
process, it helps existing shareholders achieve fair market pricing
based on the anticipated high volume of buyers and sellers who will
participate in the auctions.”
REITbid Advantages
In addition to offering a liquidity option and streamlining the entire
process of buying, selling and transferring shares, REITbid provides
several other unique advantages including:
User-friendly platform that is easy enough for virtually any qualified
investor to use
Transparency – provides instant access to non-traded REIT metrics and
links to SEC filings and sponsor data; users can also view all pending
bid activity on each auction
Convenience – ability to bid on and find documentation about available
non-traded REITs 24 hours per day
Security – strict multi-layer protection of all documents and personal
data
“REITbid is engineered to become the industry’s most advanced and
comprehensive solution for trading shares of existing non-traded public
REITs,” adds Lange. “It provides transparency for buyers and sellers,
giving them an efficient method for valuing shares based on a REIT’s net
asset value (NAV) and other key metrics.”
About REITbid
REITbid is owned by Share Trading Associates, LLC of Newport Beach,
Calif. Share Trading Associates is comprised of a team of real estate
and auction professionals with extensive real estate investment
experience. REITbid auctions are operated under a license agreement by
JRL Capital Corporation, a FINRA-registered Broker-Dealer since 1981.
For more information, visit www.REITbid.com.
1 Blue Vault Partners, NAREIT
2SEC filings data as of June 30, 2012. Based on closed
non-traded REITs ranked by total assets.
Press Release $CBG CBRE Group, Inc
New Online Auction Platform Gives Non-Traded REIT Shareholders and Investors Simple, Secure and Transparent Way to Buy and Sell Shares
NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- REITbid today announced a new online auction platform that matches buyers and sellers of shares in existing non-traded public real estate investment trusts (REITs). This new program is powered by an advanced and proven online auction technology (FRE.com) that is secure, easy to use, transparent and designed to create liquidity in what are typically considered illiquid assets.
Non-traded REITs have issued nearly $80 billion of equity during the past ten years to more than 2 million shareholders1, a number that is projected to rise over the next few years. As the volume of investors increases, so does the demand for shareholders who need to liquidate their shares. With approximately 2/3 of today’s top closed non-traded REITs unable to meet the liquidity demands of their shareholders2, those seeking liquidity often turn to low-ball mini-tender offers from predatory investment firms. The Securities and Exchange Commission warns “mini-tender offers have been increasingly used to catch investors off guard” when it comes to determining the value of their shares.
The REITbid platform was founded by a team of senior real estate executives led by William Lange and financed by Ray Wirta. Lange has more than 35 years experience in real estate auction marketing and is chairman of the LFC Group of Companies, a pioneer in online auction solutions. Wirta has more than 40 years experience in commercial real estate and is the former chief executive officer and a current director of CB Richard Ellis (NYSE:CBG). The team made the decision to create REITbid based on industry-wide demand for a viable solution for achieving fairly priced liquidity in non-traded REIT shares.
“Shares of existing non-traded REITs may provide attractive investment opportunities that focus on current dividend yield and appreciation potential,” said William Lange, REITbid principal. “However, a drawback to investing in non-traded REITs has been a lack of liquidity. REITbid not only helps to resolve this issue with an easy-to-use online auction process, it helps existing shareholders achieve fair market pricing based on the anticipated high volume of buyers and sellers who will participate in the auctions.”
REITbid Advantages
In addition to offering a liquidity option and streamlining the entire process of buying, selling and transferring shares, REITbid provides several other unique advantages including:
“REITbid is engineered to become the industry’s most advanced and comprehensive solution for trading shares of existing non-traded public REITs,” adds Lange. “It provides transparency for buyers and sellers, giving them an efficient method for valuing shares based on a REIT’s net asset value (NAV) and other key metrics.”
About REITbid
REITbid is owned by Share Trading Associates, LLC of Newport Beach, Calif. Share Trading Associates is comprised of a team of real estate and auction professionals with extensive real estate investment experience. REITbid auctions are operated under a license agreement by JRL Capital Corporation, a FINRA-registered Broker-Dealer since 1981. For more information, visit www.REITbid.com.
1 Blue Vault Partners, NAREIT
2SEC filings data as of June 30, 2012. Based on closed non-traded REITs ranked by total assets.
REITbid
John Jatinen
949-706-6122
jjatinen@REITbid.com
Source: REITbid