James Sprow | Blue Vault |
The Board of Directors of Inland Residential Properties Trust, Inc., a nontraded REIT, on February 5, 2019, unanimously approved an estimated per share net asset value (“NAV”) as of February 1, 2019, of $16.06 per share. The REIT’s Business Manager estimated that its real estate sales values, less transaction costs, payments due to related parties, plus cash and other assets net of liabilities, and less debt, totaled $35.1 million. With 2,183,727 Class A shares outstanding, the estimated NAV per share is $16.06. Including the $4.53 per share initial liquidating distribution, the total liquidating distributions estimate would be $20.59 per share.
Related: Inland Residential Properties Trust Sells Illinois Apartment Community
On January 25, 2019, all outstanding shares of the Company’s Class T common stock and Class T-3 common stock were converted to shares of the Company’s Class A common stock on January 23, 2019. The Company paid an initial liquidating distribution on January 25, 2019 of $4.53 per share to the record holders of Class A Shares as of the close of business on January 25, 2019. The net proceeds from the sale of “The Commons at Town Center” were used to pay the initial liquidating distribution.
The REIT’s Business Manager estimated proceeds from the sale of the property commonly known as “Verandas at Mitylene” based on the contract sale price of approximately $40.5 million, minus the principal amount of a mortgage loan of approximately $21.9 million to be assumed by the buyer, less estimated closing costs and other prorated adjustments. The Verandas at Mitylene was purchased in July 2017 for $36.7 million. The Company also owns “The Retreat at Market Square” but has not obtained any appraisals. The Retreat at Market Square was purchased by the REIT in September 2015 for $45.7 million. The Company used an estimated liquidation date of April 30, 2019, in its analysis, and includes projected net income through that date in its estimates of liquidating values.
Related: Inland Residential Properties Stockholders Approve Plan of Liquidation
Inland Residential Properties Trust, Inc. commenced its initial public offering on February 17, 2015, issuing Class A shares at $25.00 per share and Class T shares at $23.95 per share. The REIT raised an estimated $51.5 million (including DRIP) before closing its offering on January 3, 2018. Through Q3 2018 the REIT paid distributions at the rate of 5.00% on Class A shares and 4.20% on Class T shares, net of fees. On February 2, 2018, the Board of Directors determined an estimated per share net asset value for Class A shares of $23.15 and Class T shares of $24.32 per share.
Sources: SEC, Blue Vault
