Hartman vREIT XXI Announces Follow-On Offering
June 25, 2019 | Luke Schmidt | Blue Vault
On June 24, 2019, Hartman vREIT XXI, Inc. (“HVREIT”), a public non-traded REIT, filed a follow-on offering for up to $220 million of its Class A and Class T shares of common stock. Class A and Class T shares will be offered at the current NAV plus applicable fees and selling commissions, which remain unchanged from the initial public offering. Selling commissions will total 7% for Class A shares and 3% for Class T shares. Dealer-Manager fees will total 3% for both share classes. Distribution and Shareholder Servicing fees will be 1% for Class T shares, with no fee being charged on Class A shares.
HVREIT commenced the initial public offering of their common stock on June 24, 2016. As of May 31, 2019, the REIT had accepted investors’ subscriptions for, and issued, 4,803,147 shares of their Class A stock and 203,479 shares of their Class T common stock, including 120,362 Class A shares and 6,288 Class T shares issued pursuant to their DRIP, resulting in aggregate gross offering proceeds of approximately $50.4 million.
As of March 31, 2019, HVREIT owned four properties and ownership in one joint venture with gross leasable area totaling 404,178 square feet. The Company pays monthly distributions at an annual rate of 5.50% for Class A shares and 4.77% for Class T shares.
Sources: SEC, Blue Vault
The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.