St. Regis resort in Aspen to become first U.S. single-asset REIT
February 08, 2018 - Aspen
Called Aspen REIT, it was given approval last month from the Securities and Exchange Commission.
Elevated Returns plans an initial public offering later this month and looks to sell 1.675 million shares at $20 a piece, keeping 51 percent of the shares for itself, according to the Commercial Observer.
Elevated Returns president Stephane De Baets told the Observer the company will bring in Citadel Securities to promote liquid trading of the REIT shares. He called the plan a “democratization of the investment model” and believes the model could inspire more like it.
“The market-maker is very incentivized to keep the market liquid,” he said. “If the first [single-asset REIT] is successful, there’ll be 20 of these.”
The St. Regis Aspen has 179 units in two five-story buildings, according to Real Capital Analytics. Elevated Properties purchased the property in 2010 in a joint venture with De Baets’ Bangkok-based OptAsia Capital firm for $70 million and since invested $50 million in renovations. They refinanced with a $100 million mortgage from KSL Capital Partners in 2015.
The resort property also includes five restaurants, a full-service spa, butler service, and is two blocks from the Aspen Mountain ski resort.
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