CNL Healthcare Properties II Lowers Fees in Current Offering
March 27, 2017 | by James Sprow | Blue Vault
On March 20, 2017, the REIT and CNL Securities Corp., its dealer manager, entered into an Amended and Restated Dealer Manager Agreement, which amends and restates the dealer manager agreement dated March 2, 2016, between the Company and the Dealer Manager. The Amended and Restated Dealer Manager Agreement reduces the sales commissions, dealer manager fees and ongoing annual distribution, and stockholder servicing fees payable to the Dealer Manager, and participating broker-dealers in connection with the sale of Class A, Class T or Class I shares, in the primary portion of its ongoing offering as follows:
Class A Shares
For Class A shares sold in the primary offering, the REIT will pay the Dealer Manager a maximum combined selling commission and dealer manager fee of 8.5% (previously 9.75%) of the sale price for each Class A share. The maximum selling commission is 6.0% (previously 7.0%) of the sale price and the maximum dealer manager fee is 2.5% (previously 2.75%) of the sale price.
Class T Shares
For Class T shares sold in the primary offering, the REIT will pay the Dealer Manager a maximum combined selling commission and dealer manager fee of 4.75%. Within this limit, the Dealer Manager may elect the respective amounts of the selling commission and dealer manager fee, provided that the selling commission shall not exceed 3.0% of the gross proceeds from the completed sale of such Class T shares sold in the primary offering.
Class T and Class I Shares
For Class T and Class I Shares sold in the primary offering, the Company will cease paying the annual distribution and stockholder servicing fee of 1.00% and 0.50%, respectively, if the total underwriting compensation, comprised of the dealer manager fees, selling commissions, and annual distribution and stockholder servicing fees, payable to broker-dealers in connection with the sale of Class T and Class I shares in the primary offering exceeds 8.5% (previously 9.75%) of the gross offering price of such Class T or Class I shares, respectively.
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