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NorthStar/RXR New York Metro Real Estate Proposes Merger or Sale of Assets

September 13, 2018

NorthStar/RXR New York Metro Real Estate Proposes Merger or Sale of Assets

September 12, 2018 | James Sprow | Blue Vault

NorthStar/RXR New York Metro Real Estate Inc. will ask its shareholders to vote on its proposed merger with a unit of CNI NS/RXR Advisors LLC, the nontraded real estate investment trust’s adviser.

The shareholders will also vote on the planned sale of the REIT’s assets in one or more transactions.

The vote will be held at NorthStar/RXR’s annual shareholder meeting on October 17.

As of June 30, 2018, the REIT had total assets of $46.6 million. The REIT commenced operations on December 23, 2015. On March 15, 2018, the Company’s board of directors determined to terminate the Primary Offering, having raised total gross proceeds of $40.7 million, including $327,073 pursuant to the DRIP.

As of June 30, 2018, the Company held a non-controlling interest of approximately 1.0% in 1285 Avenue of the Americas, a 1.8 million square foot Class A office building in midtown Manhattan. As of June 30, 2018, the carrying value of the Company’s investment at fair value was $5.4 million. The REIT also had debt investments in mezzanine loans with a carrying value of $34.9 million. 

On May 10, 2018, the board of directors of the Company approved a daily cash distribution of $0.000753425 per share of common stock for each of the three months ended September 30, 2018. This equates to a rate of $0.275 annualized, for an annualized yield of 2.72% for Class A shares.

The REIT incurred fees to the advisor and dealer manager for the six months ended June 30, 2018, of $386,464.

In February 2017 the REIT’s Amended Advisory Agreement eliminated acquisition fees and disposition fees payable to the Advisor. Prior to February 2017 the acquisition fee was equal to 2.25% of each real estate property acquired by the Company and 1.0% of the amount to acquire or originate CRE debt investments. From inception through February 2017, the Advisor Entities waived $0.1 million of acquisition fees. The disposition fee was equal to 2.0% of the contract sales price of each property sold and 1.0% of the contract sales price of each CRE debt investment sold. From inception through February 2017, no disposition fees were incurred or paid.

Sources:  SEC, Blue Vault

 

Learn more about Colony Capital on the Blue Vault Sponsor Focus page

 

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