Resource Apartment REIT III Will Close Primary Offering October 31
October 30, 2019 | James Sprow | Blue Vault
On October 24, 2019, the board of directors of Resource Apartment REIT III, Inc. approved the termination of the REIT’s primary public offering stage effective October 31, 2019. Subscriptions must be dated on or before October 31, 2019, and subscriptions and all related documents and funds must be received in good order by November 15, 2019. The nontraded REIT plans to continue to offer shares under the distribution reinvestment plan after the primary offering terminates.
According to an SEC filing on August 12, 2019, the REIT commenced its offering of up to $1,100,000,000 of shares of common stock on April 28, 2016. As of August 6, 2019, it had accepted aggregate gross primary offering proceeds of $106.7 million related to the sale of 601,207 Class A shares, 1,049,996 Class T shares, 9,118,477 Class R shares and 624,325 Class I shares and aggregate gross proceeds under the distribution reinvestment plan of $2.9 million related to the sale of 27,040 Class A shares, 67,540 Class T shares, 267,185 Class R shares and 1,994 Class I shares in the offering.
According to sales reports to Blue Vault, Resource Apartment REIT III had sales of $1.07 million in September 2019. As of June 30, 2019, the REIT had total real estate investments of $199.1 million and total assets of $237.4 million. As of June 30, 2019, the REIT owned seven apartment properties comprising a total of 1,360 units. The distribution rates on its Class I and Class R shares were 5.74% and 4.50%, respectively, net of fees, based upon the original offering prices.
Through July 2, 2017, the Company offered shares of Class A and Class T common stock in the primary and DRIP offering. As of July 3, 2017, the Company ceased offering shares of Class A and Class T common stock in its primary offering and commenced offering shares of Class R and Class I common stock in both the primary and DRIP offering.
On June 27, 2018 and March 21, 2019, the board of directors of the Company determined an estimated net asset value (“NAV”) per share of the common stock of $9.05 and $9.12, respectively, based on the estimated market value of the portfolio of investments of the Company as of March 31, 2018 and December 31, 2018, respectively. Based on the estimated NAV per share, the board of directors established updated offering prices for shares of Class R and Class I common stock to be sold in the primary portion of the initial public offering by adding certain offering costs to the estimated NAV per share.
Sources: SEC, Blue Vault
