Tampa REIT buys second property for portfolio

In advance of an anticipated initial public offering later this year, Generation Income Properties Inc. is working to expand its portfolio of net-leased retail properties.

The Tampa real estate investment trust earlier this month closed on its second property, a new Starbucks coffee shop at 1300 S. Dale Mabry Highway, for $3.46 million.

David Sobelman, GIP’s founder and president, says the purchase price represents a 15% discount to the property’s market value. He describes the property as “stabilized.”

The REIT acquired its first property, a newly built and corporately owned 7-11 convenience store in Washington, D.C., last June for $2.48 million.

In February, the REIT, which Sobelman formed in September 2015, announced a joint venture with Chicago-based Oak Street Real Estate Capital.

Oak Street agreed to provide Generation Income with $15 million, in the form of preferred equity capital, to acquire additional properties.

Generation Income intends to begin selling shares to the public this summer on the Over The Counter stock exchange, and hopes to have a market capitalization of roughly $50 million by the end of this year, Sobelman has said.