About EagleRidge

EagleRidge Realty Trust, Inc. is a Maryland corporation formed on January 29, 2015 for the purpose of investing in a diversified portfolio of real estate properties and other real estate related assets. We presently expect that the initial properties acquired will be multi-family apartment complexes located in the Fargo, North Dakota/Moorhead, Minnesota area.


A Message from the CEO

Welcome to EagleRidge Realty Trust and thank you for giving us the opportunity to explain what EagleRidge is all about and who we are. Our real estate partnership was formed nearly a decade ago from the desire to bring the best real estate developments possible to the region. With the underlying goals of offering superior design and unique amenities, developments like Shadow Wood, Maple Ridge, Eagle Point in Fargo, and Stonebridge Farms in Minot were created. These successful developments set us on a path of continual growth and improvement.

With that mindset, EagleRidge Partners was born. We felt multifamily housing could be built more efficiently and with higher quality than what was offered in the community. Our strategy was to take the construction profit normally made on a project and pour it back into the buildings. This allowed us to offer amenities not found in the market. We also set new standards in construction by offering larger units with better layouts and higher quality finishes. Our buildings feature unmatched energy efficiencies, sound proofing that exceeds any standard, and exteriors that set our product apart from other properties.

Our goal at EagleRidge is to continue to build the highest quality product in the best locations. Achieving this goal will allow us to organically grow EagleRidge Realty Trust with properties that set us apart. In addition, we will seek out properties that match our quality and design standards to grow into markets and locations that are not available to build. This combination will bring EagleRidge Realty Trust to new levels of growth and prosperity.

At EagleRidge, we all think like owners because we are. Everyone in the organization is an owner and has their own money invested in what we do. We will continue to invest our own money into what we believe is a wise long term investment strategy. If you choose to join us, we will treat your investment as we do our own.

Regards,

jeff-sig

Jeff Laliberte

CEO, EagleRidge Realty Trust

Mission

Our mission is to invest in a diversified portfolio of real estate properties and other real estate related assets. It is anticipated that our portfolio will consist primarily of various types of commercial real estate properties, including multi-family residential, office, industrial, retail and other commercial properties that are located in the Upper Midwest United States.


REIT Structure

We plan to qualify as a Real Estate Investment Trust (REIT) for federal income tax purposes. Currently, we do not qualify as a REIT but intend to do so beginning with our taxable year ending December 31, 2015 or 2016. In general, a REIT is a company that combines the capital of many investors to acquire real estate and/or real estate related assets and meets certain other qualifications. The benefits of a REIT may include the following:

  • Diversified real estate portfolio under professional management;
  • Not subject to federal corporate income taxes on its income that it distributes to its stockholders, which substantially eliminates “double taxation” (i.e., taxation at both the corporate and stockholder levels); and
  • Is required to distribute to its stockholders at least 90% of its annual taxable income.

Notwithstanding the foregoing, in any period prior to qualification as a REIT, the Company may, in its sole discretion, elect to be treated as an S corporation or C corporation for federal income tax purposes.

We plan to operate as an Umbrella Partnership Real Estate Investment Trust, which is a REIT that holds all or substantially all of its assets through a partnership which the REIT controls as general partner. Therefore, we will hold all or substantially all of our assets through our operating partnership, EagleRidge Properties, LLLP, which we control as the general partner. The operating partnership was formed as a North Dakota limited liability limited partnership on February 4, 2015. This operating partnership will own our assets, directly or indirectly, generally through special purpose entities.

We have decided to use an Umbrella Partnership Real Estate Investment Trust structure to facilitate acquisitions of real estate properties. A sale of property directly to a REIT is generally a taxable transaction to the property seller. However, in an Umbrella Partnership Real Estate Investment Trust structure, if a property seller exchanges the property with our operating partnership in exchange for LLLP interests, the seller may defer taxation of gain in such exchange until the seller resells its LLLP interests or exchanges its LLLP interests for the Company’s common stock.  Before a seller may resell its LLLP interests or exchange its LLLP interests for the Company’s common stock, such seller must hold such LLLP interests for a period of at least one year.  The Company currently anticipates that exchanges of Company common stock for LLLP units in the operating partnership will occur on a one-to-one basis. By offering the ability to defer taxation, we may gain a competitive advantage in acquiring desired properties over other buyers who cannot offer this benefit.  Exchanges of LLLP interests for common stock of the Company will be a taxable event.

In addition, investing in our operating partnership, rather than directly in the Company, may be more attractive to certain institutional or other investors due to their business or tax structure. If an investor is interested in making a substantial investment in our operating partnership, we may agree to terms for such investment that are different from the terms of this offering, such as lower fees payable by such investor in consideration of the size of its investment. Our structure provides us the flexibility to accommodate such different terms, while applicable tax laws generally restrict a REIT from charging different fee rates among its stockholders.

 

REIT Organizational Chart

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Investment Objectives

Our primary investment objectives are:

  • To preserve and protect stockholders’ capital;
  • To produce attractive risk-adjusted returns and pay consistent distributions to stockholders; and
  • To deliver long-term capital appreciation.

Investment Strategy

The Company’s investment strategy is to acquire and maintain a diversified portfolio of income producing real estate assets located in the Upper Midwest United States. Our acquisitions will focus on stability and consistency of income, disciplined and controlled growth, and transparency to its investors.

More specifically, our investment strategy is to establish a diversified portfolio of:

  1. Commercial real estate properties in various sectors, including multi-family residential, office, industrial, retail and other commercial property types, located throughout the Upper Midwest United States;
  2. Ownership interests in real estate properties in various sectors, including multi-family residential, office, industrial, retail and other commercial properties, located throughout the Upper Midwest United States;
  3. On a limited basis, other real estate related assets, including debt and equity interests backed by real estate; and
  4. Cash, cash equivalents and short-term investments.

The Company will maintain a long-term, buy-and-hold mentality but may also attempt to capitalize on short-term market considerations to maximize our investments, see “Investment Guidelines.” While we plan to concentrate our investments in the Fargo, North Dakota/Moorhead, Minnesota region at the outset, it is our intention to acquire assets in other markets throughout the Upper Midwest states that we believe will meet our investment objectives.


REIT Officers

Name Position
Jeffrey Laliberte Chief Executive Office/Secretary, Director
James Bullis Chief Operating Officer/President, Director
Rodney Paseka Director
Kent Busek Treasurer, Director