Real Estate Firms Test Waters with New Reg A+ Offerings

March 16, 2016Article
Law 360

Benjamin Alexander was quoted in a Law360 article that ran March 16, 2016, about smaller companies taking advantage of the new version of Regulation A that went in effect in 2015. The new regulation “Reg A+” allows companies to raise more capital than they previously could and also allows companies to gauge investor interest before formally pursuing an offering.

Generation Income Properties Inc. became the first real estate investment trust to file a Regulation A+ public offering with the U.S. Securities and Exchange Commission.

“It’s certainly an interesting play and a way to reduce some of the ongoing costs and initial ramp-up costs,” said Alexander of Greenberg Glusker Fields Claman & Machtinger LLP. “I expect to see a fair amount of people trying it out. You can do a lot of things in the real estate with the capital you can raise.”

Under Reg A+, companies can raise up to $50 million. The prior cap had been $20 million.