Minnesota real estate firm Nolan Reynolds International (NRI) is planning a $240 million blockchain-based real estate investment trust (REIT), Crypto Investor has learned.
It would be a first for NRI, and will be among the largest blockchain-based REITs when launched, though it isn’t without competitors. Boutique investment bank Entoro Capital of Houston is acting as a placement-agent for the endeavor.
NRI is projecting a recapitalization of $73 million on the REIT, and is hopeful to launch in Q2. The REIT’s initial investment will be in a 770,000 sq-ft. mixed use property in Miami called Thesis. NRI plans to use the recapitalization from its initial $17-million investment as the cornerstone of the new REIT, which will focus on acquiring mixed use and hospitality developments.
The REIT would tokenize investment in Thesis, allowing investors to own a 0.14% stake in the property for the $100,000 entry point. Unlike traditional REITs, investors will be able to digitize and trade their interest on secondary markets after a holding period of six months.
Net operating income to the REIT is projected at $14.7 million.
A spokesperson for NRI declined to comment. Entoro also declined to comment.
Operated by CEO Brent Reynolds, NRI has a portfolio of primarily mixed use properties in the United States and an international collection of hospitality properties.
Entoro, run by managing member James Row, specializes in digital-assets.
The tokenization of real estate isn’t a new idea, but NRI’s plans would be a notable step toward the adoption of blockchain technology in real estate.
Dubai-based GlobalREIT, which launched in 2017, offers similar services for investors and has an asset portfolio of about $175 million, according to their website. Platforms like Yieldstreet and Fundrise offer similar services to retail investors.
More broadly, blockchain technology could alter vast swaths of the real estate industry. Deloitte’s U.S. Center for Financial Services noted in a recent report that blockchain “can potentially transform core commercial real estate operations such as property transactions like purchase, sale, financing, leasing and management.”
Crypto Investor EiC Michael Bodley contributed reporting.
Minnesota real estate firm Nolan Reynolds International (NRI) is planning a $240 million blockchain-based real estate investment trust (REIT), Crypto Investor has learned.
It would be a first for NRI, and will be among the largest blockchain-based REITs when launched, though it isn’t without competitors. Boutique investment bank Entoro Capital of Houston is acting as a placement-agent for the endeavor.
Subscribe for full article
Get Access to Our Exclusive Content
Already subscribed? Log In
