Resource Innovation Office REIT to Revise Offering, Lower Fees, Offer New Share Classes
April 24, 2017 | by James Sprow | Blue Vault
Resource Innovation Office REIT Inc., a nontraded REIT sponsored by Resource Real Estate Inc., has suspended sales of its Class A and Class T shares in its public offering as of Friday, April 21. The board of directors also suspended the distribution reinvestment plan effective May 1 and the share repurchase plan effective May 21.
The REIT intends to convert its $1.1 billion offering to a perpetual-life offering, following the pattern of other nontraded REIT programs that offer improved liquidity, daily NAV pricing, and reduced upfront fees.
The company plans to resume share sales, and amend and reinstate the DRIP and SRP, once the changes to its offering have been completed. The Company will create new share classes of common stock with pricing at the net asset value per share plus selling commissions and dealer manager fees.
The REIT will make a tender offer for all shares currently issued and outstanding after it shuts down the share repurchase program on May 21.
Blue Vault reports that the REIT had raised $0.657 million in its offering during the first quarter of 2017 following its 2016 capital raise of $4.02 million.
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The time (at Blue Vault's 2nd Annual Broker Dealer Educational Summit) proved extremely informative.