Resource Innovation Office REIT Purchases Office Building in Chicago and Announces Stock and Cash Distributions
PHILADELPHIA–(BUSINESS WIRE)–Resource Innovation Office REIT, Inc. (“Innovation Office REIT”), a non-traded real estate investment trust sponsored by Resource Real Estate, Inc., announced Tuesday that it has completed the purchase of 1025 W Sunnyside, an office building located in Chicago, Illinois, from Cedar Street Companies for $7.25 million.
This location offers 27,852 square feet of innovative office and retail space. The building’s design includes exposed wood beams, high ceilings, open floor plans, and an abundance of natural light. The office layout has several lounges and café-style workspaces that foster collaboration and encourage employee interaction. The property is conveniently located one block south of the Wilson CTA train station (Red and Purple lines) and immediately across from the 2010 Wilson Yard development, a major retail and multifamily complex.
The property is currently 100 percent occupied by tenants that include Fansided, one of the country’s fastest growing independent sports and entertainment networks. It has easy accessibility to Montrose Park, which offers sandy beaches, a skate park, athletic fields, golf courses, and hiking trails.
Innovation Office REIT Chief Investment Officer, Martin Caverly, explains that, “The Uptown submarket in which the property is located is the focus of significant investment by the city and is undergoing a process of rapid gentrification. The Innovation Office REIT intends to focus on retaining current tenants and growing revenue as the surrounding neighborhood continues to improve.”
Earlier, on November 21, 2016, the Board of Directors of Innovation Office REIT declared cash distributions on the Class A and Class T outstanding common stock based on daily record dates for the periods from December 1, 2016 through December 29, 2016, from December 30, 2016 to January 30, 2017, and from January 31, 2017 to February 27, 2017, which distributions it expects to pay on December 30, 2016, January 31, 2017, and February 28, 2017, respectively.
Distributions for these periods will be calculated based on the stockholders of record each day during these periods as follows:
- Class A Common Stock – at a rate of $0.000547945 per share per day;
- Class T Common Stock – at a rate of $0.000547945 per share per day less the applicable daily distribution and shareholder servicing fees accrued for and allocable to the Class T common stock divided by the number of shares of common stock of such class outstanding as of the close of business on the respective record dates.
Stockholders may choose to receive cash distributions or purchase additional shares through Innovation Office REIT’s distribution reinvestment plan. Distributions reinvested pursuant to the distribution reinvestment plan will be reinvested in shares of the same class as the shares on which the distributions are made. Some or all of the cash distributions may be paid from sources other than cash flows from operations.
Also on November 21, 2016, Innovation Office REIT’s Board of Directors authorized a stock dividend for the fourth quarter of 2016 in the amount of 0.005 shares of common stock on each outstanding share of common stock to all common stockholders of record as of the close of business on December 31, 2016. Stock dividends are issued in the same class of shares as the shares for which such stockholder received the stock dividend. Innovation Office REIT expects to issue this stock dividend on or about January 13, 2017.
Innovation Office REIT believes that the stock dividend should be a tax-free transaction for U.S. federal income tax purposes under Section 305(a) of the Internal Revenue code of 1986, as amended, but stockholders should consult their own tax advisors regarding the tax consequences of this stock dividend.
All statements and information other than statements of historical fact included in this press release regarding strategy, future operations, financial position, estimated revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. When used, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. You should not place undue influence on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved because of the number of risks and uncertainties, many of which are beyond our control, including but not limited to uncertainties concerning the properties being operated and sold or refinanced, leverage and meeting debt service obligations, operating properties in different locations throughout the U.S., general, market or business conditions and changes in laws or regulations.
These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.
About Resource Innovation Office REIT, Inc.
Resource Innovation Office REIT, Inc. seeks to address the next generation of office space needs for creative companies and their employees. With an improving economy, today’s U.S. office market is underdeveloped in the face of growing demand driven by current urbanization trends. Innovation Office REIT seeks to acquire innovative office assets located in cities that attract top talent and that are experiencing employment growth.
Innovation Office REIT is sponsored by Resource Real Estate, Inc., a subsidiary of Resource America, Inc. (“Resource”). Resource is a wholly owned subsidiary of C-III Capital Partners LLC, a leading real estate investment management and commercial property services company. Resource’s investments emphasize consistent value and long-term returns with an income orientation.