Escondido, CA (PRWEB) May 17, 2012
NetREIT, a Maryland-based real estate investment company with headquarters in Escondido, California, today announced the completion of the purchase of eight (8) model homes by Dubose Model Home Investors, #201 from the K. Hovnanian Family of Builders.
K. Hovnanian is the eighth largest builder in the nation, completing over 5,000 closings in 2011. The total purchase price for the 8 homes was $3,478,120 with an appraised value of $4,034,000. The properties are located in various markets in Northern California, Southern California, and the suburbs of Phoenix, Arizona.
NetREIT CFO, Kenneth W. Elsberry said, “Dubose Model Home Investors, #201 continuously escalates our extensive portfolio by searching out and locating profitable real estate investment opportunities for our investors. We are pleased with this newest acquisition.”
Dubose Model Home Investors, #201 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 lease, the builder will seek to sell the property to a third party purchaser. The management team of Dubose Model Home Investors, #201 has significant experience and has 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:NetREIT