Edgewood Real Estate Investment Trust Announces $108 Million Equity Offering

The North Dakota-based REIT plans to raise capital for growth through a mix of equity sales and reinvestments.

December 11, 2024

Overview of the Equity Offering

Edgewood Real Estate Investment Trust (REIT), headquartered in Fargo, North Dakota, has launched an equity offering aimed at raising up to $108 million. As a key player in the real estate investment sector, Edgewood's new initiative signals its commitment to leveraging investor capital for expanding its property portfolio and strengthening operational capacity.

The offering primarily targets accredited investors, with a minimum buy-in of $54,000. Edgewood plans to distribute up to $25 million of the equity offering through its existing shareholder reinvestment program. Notably, the offering includes a mix of direct equity sales and reinvestment strategies designed to encourage broader participation among current investors.

Strategic Expansion Plans

Edgewood's focus remains firmly rooted in acquiring, developing, and managing diversified real estate assets across its targeted regions. While the company has not disclosed specific asset acquisitions, the raised funds are expected to support investments in high-demand property types, likely benefiting from North Dakota's growing real estate market.

In alignment with its strategic goals, the REIT emphasizes maintaining a balanced approach to growth, blending stability from existing properties with opportunities presented by market dynamics. This approach underscores Edgewood's efforts to create sustainable returns for its investors while minimizing operational risks.

Offering Details

Edgewood has already raised $200,000 in the initial stages of the offering, leaving a significant portion of its targeted $108 million goal available. The company aims to distribute securities to a select pool of investors under Rule 506(b) of Regulation D. This rule allows the company to market its offering to accredited investors while keeping compliance costs lower than public equity offerings.

Sales commissions associated with the offering are projected at approximately $1 million, handled primarily by Great Plains Financial Services, LLP, a brokerage based in Bismarck, North Dakota. Despite the costs, Edgewood is optimizing its resource allocation to ensure the proceeds are effectively channeled toward its investment priorities.

Governance and Leadership

The leadership team, led by President Jon E. Strinden, emphasizes transparency and regulatory compliance in managing the equity offering. Edgewood's governing structure includes a mix of executive officers and directors with expertise in real estate and finance, ensuring a robust framework for decision-making.

As the REIT continues to attract interest from institutional and individual investors, its governance model provides reassurance of its commitment to ethical and performance-driven management.