What’s Behind Irvine Co. REIT Offer?
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Regarding your article “Irvine Co. Will Offer the Public Part of Holdings” (Sept. 16), historically real estate investment trusts, or REITs, have been a fairly decent, albeit higher risk, venture for the investor who may enjoy considerable return of their investment through profits from rentals. However, in the case of the recently announced offering by one of Orange County’s largest landowners, the Irvine Co., this may be an investment that should be carefully studied before taking the plunge.
One has to wonder why at this time the Irvine Co. is suddenly so anxious to share part of the company with the public. Could it be that with the recent announcement of the closure of both the Tustin Marine helicopter base and El Toro Marine Corps Air Station, a sizable portion, perhaps up to 20%, of the apartment units now occupied by Marine personnel will soon be vacated, thereby leaving an enormous hole in their profit from the apartment units? What better time to unload some of the burden on unsuspecting investors anxious to try to recoup from the current low interest rates being paid on certificates of deposit. Caveat Emptor (let the buyer beware).
MERYL SCHWARTZ
Irvine
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