Comrit Completes Tender Offer for CNL Healthcare Shares

Comrit Investments 1 LP, a Tel Aviv-based investment fund, has completed its unsolicited tender offer to purchase up to 9 million shares of CNL Healthcare Properties Inc., a non-traded real estate investment trust.

CNL Healthcare had a net asset value per share of $7.81 as of December 31, 2019, and Comrit purchased nearly 340,000 shares for $4.66 each.

The REIT’s previous NAV per share was $7.99 as of December 31, 2018 and reflects a $2.00 per share special distribution paid in May 2019 and $0.02 adjustments relating to closing costs from certain asset sales. Shares originally sold for $10.00 each.

Prior to the tender offer, Comrit and its affiliates did not own any shares of the REIT.

CNL Healthcare Properties closed its offering in September 2015 after raising more than $1.7 billion in investor equity. As of December 31, 2019, the company’s multi-billion-dollar real estate portfolio consisted of interests in 74 properties, including 71 senior housing communities, one vacant land parcel and two acute care hospitals classified as held for sale.

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Hotel Equities Forms Strategic Alliance with Hotel Investment Firm

Hotel Equities, a hotel ownership, management and development company, and its private equity affiliate Virtua Partners, has formed a strategic alliance with The Witness Group, a hospitality development and investment firm. Virtua Partners is a sponsor of non-traded direct investment offerings, including Delaware statutory trusts and qualified opportunity zone funds.

As part of the deal, Hotel Equities has transitioned and assumed operations of The Witness Group’s 36-property portfolio, which include Marriott, Hilton, IHG and Hyatt hotels. The partnership expands Hotel Equities’ and Virtua’s footprint into the Midwest region.

Hotel Equities and Virtua Partners said that they plan to focus on future transactions, conversions and new development generating “a significant value-add for investors, associates and all parties involved.”

“Merging best-in-class teams, resources and procurement cost savings will expand our footprint together and create significant opportunity for all stakeholders. We could not be more excited and see the potential for other partnerships moving forward, ” said Joe Reardon, Hotel Equities’ chief development officer.

Hotel Equities is based in Atlanta and has a portfolio of 160+ hotels and projects throughout the United States and Canada. Virtua Partners is a global private-equity firm specializing in commercial real estate. Virtua Partners and Hotel Equities finalized their merger earlier this year.

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RW Holdings NNN REIT Buys Online Investment Platform with Two Reg A+ Offerings

RW Holdings NNN REIT Inc., a publicly registered non-traded real estate investment trust formerly known as Rich Uncles NNN REIT Inc., has completed the acquisition of the REITless Investment Platform, an online platform for commercial real estate investment offerings.

In a letter to shareholders, RW Holdings said that the acquisition of REITless will allow it to add new investment choices to its platform, with all the management fee revenue from those products going to the REIT.

“NNN investors are able to not only benefit from rental income and investment management revenue, but also any future increases in our [net asset value] as we pursue an industry consolidation strategy to create future growth,” the REIT added. “We anticipate similar strategic announcements in the future.”

REITless currently has two qualified Regulation A+ offerings for individual investors, including The REITless Income Strategies LLC and the REITless Opportunity Zone Strategies LLC. The platform was founded by North Capital, a provider of transaction technology and brokerage services for private offerings.

“We believe we are now entering a phase where we will see significant consolidation as industry participants reach maturity in terms of their growth capacity and the limits of their balance sheets,” said Aaron Halfacre, chief executive officer of RW Holdings NNN REIT. “We believe we are uniquely qualified to be a consolidator of the non-listed real estate product industry, given the combination of our deep understanding of both the crowdfunding and real estate markets and the strength of our shareholder-owned, self-managed business model.”

NNN intends to update the REITless funds in early 2021.

RW Holdings NNN REIT was formed in 2015 to primarily invest in single-tenant income-producing properties located in the United States. As of June 30, 2020, the REIT’s real estate investment portfolio consisted of 45 operating properties, a 72.7 percent tenant-in-common interest in an office property and one parcel of land. RW Holdings NNN REIT has raised $193.8 million in investor equity as of June 30, 2020.

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Capital Square 1031 Launches DST Offering of Virginia Apartment Community

Capital Square 1031, a sponsor of Delaware statutory trust offerings, has launched CS1031 Williamsburg VA Apartments DST, a Regulation D private placement comprised of Elan Williamsburg, a newly constructed, Class A apartment community in Williamsburg, Virginia.

The offering seeks to raise $21.4 million in equity from accredited investors with a minimum investment of $50,000. The acquisition was financed by Fannie Mae with a 2.80 percent fixed rate 10-year loan.

“Elan Williamsburg is the latest in a line of Class A multifamily communities acquired by Capital Square directly from developers following the initial lease-up of the property,” said Louis Rogers, founder and chief executive officer of Capital Square.

Constructed in 2018, Elan Williamsburg is comprised of 198 units, and includes one-, two- and three-bedroom apartments ranging in size from 712 square feet to 1,232 square feet. Situated on approximately nine acres of land, the property has four three-story buildings and a clubhouse. The community is approximately 93 percent occupied as of August 7, 2020.

Property amenities include a resident clubhouse; beach entry pool with two designated lap lanes; poolside fire pit lounge; game room; a fitness center, and a yoga room where classes are also held. Additional amenities include summer kitchens with outdoor grilling and dining areas; an Amazon Hub package concierge, garage parking, additional storage, walking trails throughout the community and direct access to The Reserve trail network.

In other news, last week, Capital Square fully subscribed its CS1031 2000 West Creek Apartments DST, a Regulation D private placement comprised of a Class A+ multifamily community in Richmond, Virginia.

Capital Square specializes in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. To date, the company has completed more than $2 billion in transaction volume. Related entities provide due diligence, acquisition, loan sourcing, property/asset management, and disposition, for high net worth investors, private equity firms, family offices and institutional investors.

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ExchangeRight Fully Subscribes $39 Million DST Offering

ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has fully subscribed its $39.1 million Net-Leased Portfolio 37 DST, a Delaware statutory offering that invests in necessity-based retail and healthcare properties.

Net-Leased Portfolio 37’s portfolio includes 11 single-tenant properties located in Alabama, Georgia, North Carolina, South Carolina, and Tennessee. Tenants include CVS, Dollar General, and Fresenius Medical Care, among others.

The offering launched with 7-year fixed-rate financing with an annual interest rate of 3.95 percent and a weighted-average lease term of 12.1 years.

“The tenants that we focus on across our 1031-eligible DST and income fund platforms have demonstrated resilience throughout the pandemic, frequently even seeing demand for their products and services increase due to their serving the essential needs of the public,” said Warren Thomas, a managing partner of ExchangeRight.

The company noted that Net-Leased Portfolio 37’s current cash flow to investors is 6.15 percent with annual targeted increases due to contractual rent increases included in the portfolio’s leases. The offering is designed for investors seeking to participate in a 1031 tax-deferred exchange as well as investors seeking a cash investment.

Last week, ExchangeRight fully subscribed its $44.5 million Net-Leased Portfolio 36 DST.

ExchangeRight and its affiliates’ platform has approximately $2.8 billion in assets under management and more than 700 properties totaling 14 million square feet located in 38 states. The company sources, syndicates, and manages long-term, net-leased assets backed by operators of essential businesses in the necessity-based retail and healthcare industries.

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Bluerock Residential Growth REIT to Partially Redeem Series A Preferred Stock

Bluerock Residential Growth REIT Inc. (NYSE: BRG), a publicly traded real estate investment trust that offers a preferred stock and warrants offering, plans to redeem nearly 1.4 million shares of its 8.250% Series A Cumulative Redeemable Preferred Stock on October 21, 2020, representing approximately 25 percent of the total outstanding shares.

The shares will be redeemed in cash at $25.00 per share, plus accrued and unpaid dividends in an amount equal to $0.120313 per share, for total proceeds of $25.120313 per share.

As previously announced, on October 5, 2020, the company will pay the cash dividend on the Series A Preferred Stock of $0.515625 for the period from July 1, 2020 to September 30, 2020 to each holder of record on September 25, 2020. This payment will be separate from the redemption payment.

Bluerock Residential Growth REIT stock closed at $7.19 on Tuesday.

Bluerock Residential Growth REIT focuses on developing and acquiring a portfolio of Class A apartment communities in growth markets. As of June 30, 2020, the company’s $2+ billion portfolio included 54 real estate properties, consisting of 34 consolidated operating properties and 20 properties through preferred equity, mezzanine loan or ground lease investments.

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Black Creek Diversified Declares Flat Net Asset Value Per Share for August

Black Creek Diversified Property Fund Inc., a publicly registered NAV-based perpetual life REIT formerly known as Dividend Capital Diversified Property Fund, has updated the monthly per share net asset values for its Class T, Class S, Class D, Class I, and Class E common stock, as of August 31, 2020.

As of August 31, 2020, the REIT valued all of its shares, as well as its OP units, at $7.5097

each, representing a slight increase over last month’s estimated NAV per share of $7.5062.

The NAV per share is based on the estimated value of the company’s assets, less the estimated value of its liabilities divided by the number of outstanding shares, all as of August 31, 2020. Altus Group U.S. Inc., a third-party firm, assisted with the valuation process.

Black Creek Diversified Property Fund provided a COVID-related update on its property portfolio, which is currently 92.3 percent leased with a weighted average lease term of five years.

The REIT has collected 95.5 percent of August rent to date, one of its higher monthly collection percentages since the onset of the pandemic, the company said.

“While we chose to execute short-term rent deferral agreements in the second quarter of 2020 with certain of our otherwise successful tenants, the need for additional rent deferrals has declined considerably since the onset of COVID-19,” the company noted in a filing with the Securities and Exchange Commission.

The company’s acquisition strategy is currently focused on industrial and multifamily properties, and last month it acquired a newly constructed, Class A industrial building located in the San Francisco Bay Area for $48.5 million.

“Given an uptick in e-commerce demand since COVID-19 began and the strong performance that we continue to see within the industrial sector, we remain committed to increasing our industrial allocation which has increased from 11 percent as of December 31, 2019 to 16.1 percent as of August 31, 2020,” the company said.

As of June 30, 2020, Black Creek Diversified Property Fund owned a portfolio comprised of 52 properties totaling approximately 10.1 million square feet located in 22 markets throughout the United States valued in excess of $2 billion. The REIT launched in January 2006 and has raised nearly $2.5 billion, as of August 2020.

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Trilogy Buys Multifamily Property Near Columbus, Ohio

Trilogy Real Estate Group, a sponsor of private placement investment offerings, has purchased The Mirada, a 256-unit multifamily property located in the Columbus suburb of Lewis Center, Ohio. The purchase price was not disclosed.

Built in 2018, The Mirada is comprised of 224,600 square feet of space with one-, two-, and three-bedroom units as well as studio apartments. Situated on nine acres of land, the community was 95 percent leased upon acquisition. Community amenities include a heated outdoor pool, grilling area, sand volleyball court, club room, game area, fitness center and a separate exercise studio.

Major employers located in the community’s surrounding area include, JPMorgan Chase & Co., Honda, Nationwide, Amazon and Anheuser-Busch, among others.

Trilogy Real Estate Group is a real estate investment, property management, and development firm with a focus on multifamily communities and commercial real estate assets. Since 2002, the principals of Trilogy have invested in real estate assets valued in excess of $1.7 billion, including 27 multifamily properties located in 12 states across the country. The firm has sponsored seven private investment and qualified opportunity zone funds since inception.

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CI Financial to Buy $450 Million Cincinnati-Based RIA

CI Financial Corp. (TSX: CIX), a Canadian asset management and wealth management firm, has agreed to purchase Bowling Portfolio Management LLC, a Cincinnati-based registered investment advisor with $450 million in assets under management.

The Bowling acquisition represents CI’s sixth direct registered investment advisor transaction this year and ninth overall (including acquisitions by affiliated RIAs).

When all pending transactions close, CI Financial will hold interests in wealth management firms across the U.S. with combined assets of approximately $11.5 billion, based on assets as of August 31, 2020.

Founded in 1982, Bowling provides financial planning and investment management services to high-net-worth clients. The firm is led by principals Kathy Wayner, president, chief executive officer, and managing partner, and Darren Kavesh, chief investment officer and managing partner.

“With the purchase of Bowling, CI continues to execute its ambitious plan to build a substantial, growing U.S. wealth management division through the purchase of quality RIAs in key locations,” the company said. “As part of this strategy, CI will be introducing the CI Private Wealth brand in Canada and the United States to represent its high-net-worth and ultra-high-net-worth advisory businesses.”

Following the close of the Bowling transaction, Kavesh will be named president and chief executive officer, and Wayner will remain with the firm in a consulting capacity.

The transaction is scheduled to close later this year. Financial terms were not disclosed.

CI Financial Corp. (TSX: CIX) is an independent company based in Canada with approximately $143 billion in total assets as of August 31, 2020.

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Securities America Recruits Another Credit Union Program from LPL Financial

Securities America, a wealth management firm within Advisor Group’s network, has added USE Credit Union’s investment services program to its financial institutions platform.

USECU has more than $1 billion in assets and serves roughly 62,000 California university employees, students and other California residents. Their investment services platform, which was previously affiliated with LPL Financial, currently oversees approximately $30 million in client assets.

In addition to California university employees and students, the credit union serves employees of California state agencies including the California Department of Motor Vehicles, California Highway Patrol, CalPERS and CalTrans, and others who live, work or worship in Alameda County, Sacramento County, San Diego County, Santa Clara County and Yolo County.

In July, Securities America recruited another credit union program from LPL, Oregon Community Credit Union, which oversees $340 million in client assets.

Securities America is a subsidiary of Advisor Group, which also includes FSC Securities Corporation, KMS Financial Services, Royal Alliance Associates, SagePoint Financial, Securities Service Network, Triad Advisors and Woodbury Financial Services.

Securities America is headquartered in Omaha and supports approximately 2,800 independent financial professionals. Advisor Group serves approximately 11,100 financial professionals that oversee more than $450 billion in client assets.

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