Affordable Housing Bid: A real estate syndicator...

Affordable Housing Bid: A real estate syndicator sought federal approval Wednesday to sell shares in an investment trust that is aimed at providing construction funds for affordable housing, primarily in Southern California.

Jack M. Dangelo, chairman of Great Pacific Real Estate Investment Trust Inc., said he hopes to raise $25 million in a public offering of 2.5 million shares. He said he hopes the Securities and Exchange Commission will approve the “plain vanilla” offering within 60 days.

Dangelo said he believes that this is the first investment trust to provide funds for low-income housing construction. REITs typically invest in and manage properties or provide mortgage loans for purchases.

Under the offering, each share of the newly formed Newport Beach company would sell for $10 and would come with a warrant to purchase an additional share at the same price within four years. If exercised, those warrants could bring up to $25 million more to the trust.

Because owners of the stock might want to trade their shares, their warrants or both in the future, the company plans to apply for an American Stock Exchange listing under three stock symbols to cover each kind of possible trade.