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IRVINE, CA-TNP Strategic Retail Trust, a new non-traded REIT formed by tenant-in-common industry pioneer Tony Thompson, has filed a registration statement for an initial public offering of up to $1.1 billion in common stock. The new REIT plans to acquire retail properties, primarily in the Western US, as well as invest in or originate mortgage, mezzanine and bridge loans.

TNP Strategic Retail Trust is the fifth public REIT that Thompson has sponsored since 1999. In a statement that Thompson National issued regarding the stock offering, Thompson comments, “I haven’t seen such opportunity in the retail space in a very long time.”

The new REIT will use the net proceeds of its offering to invest in a portfolio of income-producing retail properties including neighborhood, community and lifestyle shopping centers, multi-tenant shopping centers and freestanding single-tenant retail properties, according to its prospectus filed with the SEC. It may acquire properties either alone or in joint ventures, according to the filing, which says that its investments will typically range in size from $10 million to $100 million.

The prospectus says that TNP Strategic believes that, “Despite the recent economic downturn in the US, demand for property in the Western US will continue to grow in the long-run due to the projected population growth in the region and the recent constraints on the supply of retail property from the tightening credit markets.”

Additionally, it says, given the recent downturn in the real estate market, “We believe there is an opportunity to purchase retail properties at historically low prices thereby increasing our ability to realize greater appreciation on the ultimate dispositions of the properties.”

However, the prospectus also cites the risks in today’s economy. It points out that “a continued economic downturn resulting in increased tenant delinquencies and/or defaults and decreases in demand could have a material adverse effect on our operations and the value of our real estate assets.”

The $1.1 billion of shares that the new REIT is offering will be priced at $10 per share for the first $1 billion. It will offer the remaining $100 million of stock at $9.50 per share as part of a distribution reinvestment plan.

Thompson National Properties, which Thompson formed after his exit from Grubb & Ellis Co. following the merger of Grubb and his NNN Realty Advisors, provides real estate investment opportunities and asset management to high net worth domestic, foreign, individual and institutional investors. TNP owns 73 commercial properties totaling more than 10.8 million square feet under management.

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