The startup is trying to create something that, according to the heads of American real estate agencies, does not exist today in their industry: a public company that owns only one real estate.
The proposed property is a leased warehouse of 146,000 square feet
LTD. ROX Financial LP is seeking to leverage an initial public offering to create a real estate investment trust that will acquire the Amazon property. According to June Securities filings, he hopes to grow and own a collection of warehouses to serve the Seattle-based online giant.
ROX Financial has applied for a stock listing on the New York Stock Exchange’s Arca platform, a fully electronic exchange for publicly traded funds and securities, as shown by public filings.
He is offering 8,250,000 shares at $ 10 each. It will cost the startup a tiny fraction of the market cap of $ 94 billion.
the largest REIT in industrial property with the largest portfolio of warehouse leased by Amazon.
ROX Financial representatives declined to comment. But the proposed ticker AMZL was a tribute to Amazon’s strategy, said a person familiar with the company.
The firm was to start with a warehouse in Oakley, California, about an hour east of San Francisco. The property, owned by the current owner, has been leased to Amazon for 12 years. According to the filings, the minimum rent for the first year of the lease is $ 3.2 million.
The warehouse, which prepares orders for last mile delivery to Amazon customers, includes automated conveyor systems and electrical infrastructure for future vehicle charging stations. The 25-acre site, built last year, hosts a fleet gray and blue Amazon vans, in a business that competes with
as well as
ROX Financial said it hopes to expand. “We intend to transform Series AMZL into a carefully curated portfolio of logistics properties in one or more locations leased by Amazon.com Services LLC, Amazon or its affiliates,” the application said.
The company also said in its filing that, within a year of the completion of the public offering, it has the right to acquire two fulfillment centers in the area that are being built by the developer for Amazon leases.
Industrial property developers have experienced a boom in recent years, thanks in large part to demand from Amazon and other online retailers that need distribution space.
But a publicly traded real estate company that only owns one real estate does not currently exist in the US, according to Nareit, or the National Real Estate Investment Fund Association, an industry trade association.
Institutional investors found it difficult to get used to the risk of focusing on one building, analysts said. In 2014 ETRE Financial LLC, a now defunct company, tried to take a 1 million square foot office building in a public space in Boston as a single property under an IPO.
“This institutional demand never materialized,” Jesse Stein, co-founder of ETRE Financial, said in an interview. The company attempted an IPO for another office building in Washington, DC, but that also failed, added Mr. Stein, who currently heads the Republic’s investment crowdfunding platform.
The closest of these may have been a mortgage REIT, which did not own the property but a loan secured by Rockefeller Center in midtown Manhattan. In 1985, the owner of a $ 1.3 billion mortgage for an office, restaurant and shopping mall sold shares as part of an initial offer to investors.
The REIT, which collected interest on the loan and distributed that income as dividends to shareholders, ran into financial problems in the mid-1990s and was eventually sold to other investors and delisted.
ROX Financial, based in New York, is classified as a “growing growth company,” which means that certain reporting requirements, including those related to accounting, will be relaxed compared to audits that other public companies must comply with.
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