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Feb 15 2017

FS Investments Registers $2.5 Billion Non-Traded REIT

FS Investments, formerly Franklin Square, registered a $2.5 billion non-traded real estate investment trust called FS Credit Real Estate Income Trust, according to a filing with the Securities and Exchange Commission.

This is the first non-traded REIT sponsored by FS Investments, which is the largest manager of non-traded business development companies in the industry. The dealer manager is FS Investment Solutions.

FS Credit Real Estate Income Trust, which will be advised by FS Real Estate Advisor and sub-advised by Rialto Capital Management, plans to invest in floating-rate mortgage loans that are secured by first-priority mortgages on transitional commercial real estate properties. The REIT may also invest in other real estate-related assets and commercial real estate securities.



The company plans to offer four classes of shares of common stock: class T, class D, class M and class I shares. The purchase price will vary daily based on the net asset value per share, but will initially cost $25.00 each.

Class T shares are priced at $26.11 and include a 3 percent selling commission, a 1.25 percent dealer manager fee, and a 1 percent annual stockholder servicing fee paid for approximately three years. Fees and selling commissions are capped at 7.25 percent, and the minimum initial investment is $5,000.

Class D shares are priced at $25.00 and have no selling commissions or dealer manager fees, but include a 0.3 percent annual stockholder servicing fee that is capped at 1.25 percent and paid for approximately four years. The minimum initial investment is $5,000.

Class M shares are priced at $25.00 and have no selling commissions or dealer manager fees, but include a 0.3 percent annual stockholder servicing fee paid for approximately 24 years. Fees and selling commissions are capped at 7.25 percent, and the minimum initial investment is $5,000.

Class I shares are priced at $25.00 and have no selling commissions, dealer manager fees, or stockholder servicing fees associated with their purchase. The minimum initial investment is $1 million.

Class T shares are available through brokerage and transactional-based accounts, while Class D, Class M and Class I shares are generally available for purchase in this offering only through fee-based programs. Class I shares are available for purchase by endowments, foundations, pension funds and other institutional investors.

As reported by the DI Wire, FS Investments recently launched two interval funds - the FS Energy Total Return Fund and the FS Diversified Income Fund.

For more FS Investments news, visit their directory page here.

Article by: The DI Wire


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