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Cole Office & Industrial REIT Declares $10.00 NAV, Timing for Closing Primary Offering

Cole Office & Industrial REIT Inc., a non-traded publicly registered real estate investment trust, announced that its board of directors approved an estimated per share net asset value of its common stock of $10.00, as well as the timing for the close of its primary offering on July 29, 2016.

“We are pleased with the performance of CCIT II and the strength of its office and industrial portfolio,” said Bill Miller, chief executive officer and president of Cole Capital. “We will continue our efforts to maximize the value of the portfolio through active management, while at the same time embracing the industry’s evolution to meet the needs of shareholders and advisors.”

The company engaged Cushman & Wakefield of Illinois Inc., Valuation & Advisory group, to assist the board with determining the estimated per share NAV and a fair value range of CCIT II’s real estate portfolio.

Using the NAV methodology, Cushman & Wakefield arrived at a valuation range of $9.08 to $10.69 per share.

The offering price for class A shares is now $10.99 per share, reflecting the $10.00 estimated NAV plus a 7 percent selling commission and a 2 percent dealer manager fee.

The estimated per share NAV was determined and approved by the board based on the recommendation of its valuation committee, which is comprised solely of independent directors, including the independent chairman of the board.

The valuation was based upon the estimated market value of CCIT II’s assets, less the estimated market value of the company’s liabilities, divided by the total shares outstanding, and was performed in accordance with the valuation guidelines established by the Investment Program Association.

The board also approved the close of the company’s primary offering on July 29, 2016. In connection with the closing, the company’s policy will be to accept subscription agreements only if they are received by the company’s transfer agent on or before the close of business on July 29, 2016 and fully funded and in good order no later than the close of business on August 31, 2016. CCIT II intends to continue to sell DRIP shares following the termination of its public offering.

To date, the REIT has paid 26 consecutive monthly distributions to its shareholders, with a current distribution rate equal to an annualized amount of $0.63 per share. The distribution amount per share declared by the board is not affected by the determination of the NAV.

Cole Office & Industrial REIT was formed in 2013 and invests primarily in single-tenant, income-producing, necessity office and industrial properties that are leased to creditworthy tenants under long-term, net leases. According to the most recent Stanger Market Pulse, the REIT has raised $490.7 million in investor equity since inception. As of December 31, 2015, CCIT II owned 30 properties totaling 8.9 million square feet located in 17 states.

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