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CNL Growth Completes Liquidation of Portfolio

October 10, 2017

CNL Growth Completes Liquidation of Portfolio

October 10, 2017 | James Sprow | Blue Vault

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As previously reported in an 8-K filed with the SEC on July 7, 2017, the joint venture of an operating subsidiary of CNL Growth Properties, Inc. and Daniel Haywood, LLC, an Alabama limited liability company, entered into a purchase and sale agreement with MSP RE Holdings, LLC, a Delaware limited liability company and an unaffiliated third party, for the sale of the Joint Venture’s 292-unit “Class A” garden-style multifamily residential community located in Greenville, South Carolina known as “Haywood Reserve.” The sale price for the property was approximately $53.8 million.

On September 29, 2017, the Joint Venture completed the sale of the property to Haywood Reserve Operating Company, LLC, an affiliate of the buyer. The net cash to the Company from the sale of the property was approximately $20.5 million after repayment of approximately $24.6 million of debt, along with closing costs, reserves, and distributions to its joint venture partner in accordance with the provisions of the Joint Venture’s governing documents.

Haywood Reserve was the last property in CNL Growth’s portfolio to be sold following the shareholder approved plan of liquidation. The Company had previously sold two of its three remaining properties in July, 2017 and plans to pay its final liquidating distribution to its stockholders by the end of 2017, according to its 10-Q for Q2 2017.

CNL Growth Properties, formerly known as Global Growth Trust, commenced its $1.5 billion initial public offering in October 2009. In April 2013, the REIT closed the offering after raising approximately $94.2 million and changed its name to CNL Growth Properties. In August 2013, the company initiated a follow-on offering and changed its investment focus to multifamily development projects in the Southeast and Sun Belt regions of the U.S. The combined offerings raised a total of $208 million in investor equity.

 

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