Commercial real estate crowdfunding platform and investor Modiv is looking to go public next year.
The Newport Beach-based company has announced plans to seek a national stock exchange listing for its shares in early 2022.
Modiv acquires and manages commercial properties throughout the U.S. The enterprise started with a requirement of a minimum investment of $1,000 to acquire shares, which have paid steady dividends. It has since increased the threshold.
The firm was formed in 2015, under its previous name NNN Reit.
Among its founders was Ray Wirta, who was serving as chairman of CBRE Group, president of Investment Properties Group of the Irvine Company, and CEO of Koll Company at the time.
NNN Reit soon acquired Rich Uncles — an online crowdfunding platform. Its current CEO, Aaron Halfacre, was brought on in 2018, after working as the head of RealtyMogul, another crowdfunding investment platform.
Modiv currently owns 38 properties — a mix of industrial, office and retail buildings across California, Nevada, Texas, Ohio and other states. Its properties are linked to a number of tenants, including L3 Communications, Northrop Grumman, Dollar General and Wyndham.
By going public, Modiv would be able to attract “new retail and institutional investors,” Halfacre said in a statement.
Modiv is planning to close its current crowdfunding offering and a share repurchase program this month, after which it plans to file for a public listing.
In September, the REIT issued $36.8 million worth of shares to underwriters including B. Riley Securities and William Blair & Company, according to filings with the U.S. Securities and Exchange Commission.
Crowdfunding platforms have become popular over the last few years, given that small-time investors can take part in commercial property investment, without having to deal with managing a building.
But, not all platforms have had raging success. Prodigy — a crowdfunding platform that invested in New York City properties — collapsed and filed for bankruptcy earlier this year, after more than $690 million was invested.
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