WASHINGTON, DC—Recently-formed ETRE REIT isofficially listed on NASDAQ following its Februaryfiling with the Securities and Exchange Commissionfor an initial public offering. The stock, ECAV,has not begun trading because pricing is not yet set, but accordingto its IPO page, the share price will clock in between$14 and $16 per unit. Atthe midpoint of the proposed range, the REIT IPO proceeds wouldcome in at around $56 million.

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The REIT is not able to speak with reporters at this stage.Pricing is expected to be set the week of May 12.

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Its filings and road show materials, though, make forinteresting reading. The New York City-based REIT is trying out anew business model in which its individual commercial real estateproperties will be held by a separate property-owning subsidiaryowned by a separate series of limited liability company interests,or Series.

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Each Series will be taxed as a separate REIT.

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Washington DC will be the site of its first offering, SeriesA-1, which will give investors an indirect interest in 1201Connecticut Ave. NW, a building that a subsidiary ofMack-Cali Realty Corp. is selling to ETRE forapproximately $85.1 million. "Substantiallyconcurrently with the completion of this offering, we expect theProperty A-1 Subsidiary to complete the acquisition of theProperty," the REIT said in its road show materials.

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In these same materials the REIT also noted it is employing "anovel business model, which may make an investment … difficult toevaluate as it is unique to the real estate industry."

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The plan, though, as described in its marketing materials seemsstraightforward enough. As of December 2013 the property was 86.7%leased. With JLL as the property manager itintends to lease up the building.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.