Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Moody National Co. launched its first non-traded real estate investment trust, which is focused on core commercial real estate acquisitions in top-tier markets. Moody National REIT 1 calls for a maximum $1 billion capital raise through the sale of up to 100 million shares of common stock at a price of $10 per share.

The REIT, which became effective April 15, is offering shares through a national network of broker/dealers. The company also established a distribution reinvestment plan offering 10 million shares of common stock to investors for $9.50 per share. The minimum raise is $ 2 million.

According to the company’s Securities and Exchange Commission filing, the REIT’s portfolio will consist of class A commercial properties in major markets, owned exclusively or in joint ventures. The REIT will also target real estate securities and debt-related investments. The anticipated hold for the assets is 4-to-6 years.

Moody National chairman and CEO Brett Moody tells GlobeSt.com while the REIT is open to all types of real estate product, “we anticipate hospitality and debt instruments to be the two main components in the beginning.” Hospitality product, he continues, was always one of the REIT’s targets. These days, when it comes to hotels and similar product, “cash flows are available at very deep discounts,” Moody comments. “Hospitality has become a more distressed asset class during this past year.”

The process for Moody National REIT 1′s formation was launched a little less than a year ago, well before the credit markets froze. Moody says the timing of the REIT’s introduction is fortuitous, especially given the current climate and opportunities for investment. “We’re seeing unprecedented real estate pricing at this time,” he comments. “It’s a great time to be investing in real estate.”

Though the local company has spearheaded 42 Regulation D offerings through its broker/dealer distribution channel, Moody National decided to introduce a REIT to the market for several reasons. For one thing, credited investors who can buy into a Reg D offering are those with a net worth of $1 million or above. The REIT offering, however, targets investors with a lower net worth, who are willing to make a minimum investment of $2,500.

Moody says relationships his company has with the broker/dealer distribution channel also supported a REIT platform. The network had encouraged him to bring out product lines in addition to the Reg D offerings.”We always liked the publically registered, non-trading platform,” Moody adds. “After receiving encouragement from the broker/dealers, we decided to pursue this route for investment.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.