Aspen REIT Inc. is going public in a Reg A+ offering that will give the single-asset vehicle capital to acquire Aspen, Colo.'s, St. Regis Aspen Resort, which will continue to operate under the management of Marriott International Inc., according to documents filed Monday.
The resort consists of a 179-room luxury hotel encompassing restaurants, a private spa, 29,000 square feet of indoor and outdoor conference and banquet venues, and a heated outdoor pool with surrounding views of the Aspen mountainside. The property is managed by a subsidiary of Marriott International Inc.
The offering will consist of 1.675 million shares of stock priced at $20. The company plans to be listed on the New York Stock Exchange as AJAX.
Placement agent Maxim Group LLC's lead selling agents Joseph Rallo and Vera Carbone will oversee placement. Maxim also has a long track record in the private-investment-in-public-equity market.
Information and deal documents are available through online platform M-Vest.
Aspen REIT CEO, president and board member Stephane De Baets, who has a 20-year track record in corporate finance and M&A, told TheStreet that while traditional initial public offerings can be more expensive, his company chose Reg + not because of cost concerns but because it allows general solicitation to all types of investors.
Reg A+ is a product of the JOBS Act, which created offerings like Reg + and rule 506c private placements to provide small companies with more access to capital and allow retail investors access to assets previously available to institutions.
"This is the most effective way to enable the man on the street the same opportunity to invest as institutions have," De Baets said on Nov. 10.
"We're reaching out with the best digital marketing tools to offer liquidity and an institutional asset to all types of investors."
M-Vest is an online investing platform, and Maxim has extensive experience as a placement agent. While Reg A+ is relatively new, maxim has been involved in placing 249 PIPEs that raised more than $3.4 billion since 2003, according to PrivateRaise, TheStreet Inc.'s private placement data service.
De Baets noted that retail investors are likely to be at least generally familiar with real estate investing.
While are all forms of investment are risky, real estate is more familiar than some other popular investments, like initial coin offerings and leveraged ETFs.
De Baets' ER-REITS LLC, a newly-formed, majority-owned subsidiary of his Elevated Returns LLC, will provide external management of the REIT.
Elevated Returns currently has about $250 million in assets under management.
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