New Santa Ana REIT Seeks $110-Million IPO

A new Santa Ana real estate investment firm, G REIT Inc., is planning a public stock offering in hopes of raising as much as $110 million. But investors are warned in the regulatory documents for the proposed deal that the shares wouldn’t trade on a public market.

The real estate investment trust said it wants to sell as many as 11 million shares of common stock at $10 each, with 10 million shares being offered to the public, according to documents filed Wednesday with the Securities and Exchange Commission.

The firm plans to begin the offer in June, but said it could take as long as two years to sell the shares. G REIT does not plan to use an underwriter, and investors couldn’t trade the shares on any public market, the company said.

G REIT said it plans to use much of the proceeds to acquire office and industrial properties leased primarily by government agencies in California and eight other states.

G REIT will rely on an advisory firm, Triple Net Properties, to run the business. G REIT and the advisor share many officers and employees, creating a potential conflict of interest, according to the company’s filing.

For example, G REIT Chairman and Chief Executive Anthony Thompson also owns the advisory firm, which he co-founded in 1998, the documents show.

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Daryl Strickland