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Cole Office & Industrial (CCIT III) Approves $8.60 NAV

February 21, 2019

Cole Office & Industrial (CCIT III) Approves $8.60 NAV

February 19, 2019

Based on the recommendation from a valuation committee comprised of the independent directors of Cole Office & Industrial REIT (CCIT III), Inc., on February 13, 2019, the Company’s board of directors unanimously approved and established an estimated per share NAV of the Company’s Class A and Class T common stock of $8.60 based on an estimated market value of the Company’s assets less the estimated market value of the Company’s liabilities, divided by the total number of Class A and Class T shares outstanding, as of December 31, 2018.

In determining the estimated per share NAV, the Board considered information and analysis including valuation materials that were provided by Cushman & Wakefield of Illinois, Inc., Valuation & Advisory group, information provided by the Company’s advisor, Cole Corporate Income Management III, LLC, and the estimated per share NAV recommendation made by the Valuation Committee. Based on these considerations, the Valuation Committee recommended and the Board established an estimated per share NAV of the Company’s Class A and Class T common stock, as of December 31, 2018, of $8.60 per share, which was the approximate mid-point of the $8.04 to $9.19 per share valuation range calculated by Cushman & Wakefield using the NAV Methodology.

Related: Recent Changes to Nontraded REIT Estimated NAVs per Share

Commencing on February 13, 2019, shares issued pursuant to the DRIP will be issued for $8.60 per share for shares of both Class A and Class T common stock, until such time as the Board determines a new estimated per share NAV.
In accordance with the Company’s share redemption program, the per share redemption price will equal the per share value shown on stockholders’ most recent customer account statements. As a result of the Board’s determination of an estimated per share NAV of the Company’s shares of common stock, commencing on February 13, 2019, the estimated per share NAV for Class A and Class T shares of $8.60 will be the per share value shown on stockholders’ most recent customer account.

The REIT closed its public offering effective December 31, 2018. As of December 31, 2018, the REIT had accepted investors’ subscriptions for, and issued, a total of approximately 3.1 million shares of its common stock in the offering, resulting in gross proceeds of approximately $30.5 million ($23.4 million in Class A shares and $7.1 million in Class T shares; including shares issued pursuant to the distribution reinvestment plan). The original offering price for Class A shares was $10.00 per share and $9.57 per share for Class T shares.

Source:  SEC

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Ramón A. Rivera-Ramos Registered Principal, Kovack Securities, Inc. Blue Vault Nontraded REIT and Nontraded BDC Reviews September 1, 2016