A Durham-based real estate investment trust is hoping to attract $200 million from investors to fund property acquisitions across the country, according to a recent Securities and Exchange Commission filing.
TreyNet Realty Capital plans to use the potential funds to purchase single-tenant, net lease properties in the Southeast and Southwest, specifically in retail properties such as auto parts stores, convenience stores, general-merchandise retailers and quick-service restaurants.
“Most of the places you see in retail corridors, we are going to be investing in throughout the United States,” said TreyNet CEO Donald Draughon, who founded the private REIT in January.
TreyNet will offer 10- and 20-year leases on its properties and promises potential investors a monthly dividend with a 6 percent annual yield, he added.
Before starting TreyNet, Draughon was an executive vice president and director of corporate finance at Bank of North Carolina. He also previously founded KeySource Commercial Bank, a Durham-based bank with $200 million assets that was acquired by Bank of North Carolina in 2012.
TreyNet has two years to raise its goal of $200 million, with a targeted range of $40 million to $50 million coming from North Carolina investors and the rest from national REIT networks, Draughon said. The company is only accepting accredited investors.
Currently the REIT has three employees including Draughon. Mark McDonald, the founder and CEO of Arcadia Real Estate Advisors is the company’s president, and J.D. Dykstra, the founder of CNG Capital LLC, is chief investment officer. The company also has three directors.
TreyNet already has four properties under ownership, Draughon said. The company has invested in four new Dollar General locations in North Carolina, Tennessee and South Carolina. Draughon also identified Jiffy Lube as a potential franchise partner going forward.