Escondido, CA (PRWEB) May 16, 2012
NetREIT, a Maryland-based real estate investment company with headquarters in Escondido, California, today announced the completion of the purchase of eleven (11) model homes. The model homes were purchased from the K. Hovnanian Family of Builders through its majority owned subsidiary NetREIT Dubose Model Home REIT, Inc.
As the sole member and owner of NetREIT Advisors, LLC, NetREIT, Inc. is excited about this purchase from K.Hovnanian. The well-known home builder is the eighth largest builder in the nation, completing over 5,000 closings in 2011.
NetREIT CFO, Kenneth W. Elsberry said, “We believe this purchase will make an excellent addition to our portfolio resulting in substantial profits for our investors. NetREIT Dubose Model Home REIT, Inc. has shown vast wisdom and expertise in its recent purchases of properties such as the K. Hovnanian model homes.”
The total purchase price for the 11 homes was $4,767,285 with an appraised value of$5,436,500. The properties are located in various markets in Northern California, Southern California, and the suburbs of Phoenix, Arizona. NetREIT Dubose Model Home REIT, Inc. is a subsidiary that purchases model homes from builders and subsequently leases the model homes back to the builders under a triple net lease to allow the builder to utilize the model
homes when selling the subdivisions.
Upon termination of the leases, the builder will sell each property to a third party purchaser. The management team of NetREIT Dubose Model Home REIT, Inc. possesses significant real estate experience, having purchased and sold approximately $1 billion worth of model homes during their 27 years in the business.
About NetREIT, Inc.
Established in 1999 as a contrarian investment firm, NetREIT seeks out property acquisitions with hidden value. This can either involve financially distressed entities or those with property that is undervalued because of its poor condition. As a successful REIT, NetREIT, Inc. has achieved considerable success using this investment strategy. NetREIT, Inc. operates under the fundamental principle that no matter what the economic conditions are, real estate is always a good investment. According to company research, real estate has performed historically well when measured against the S&P, DJIA, and bonds. Real estate provides a strong potential hedge against inflation.
For more information, please visit the website http://www.netreit.com.