Real estate investment trust ARCTRUST III, announced the addition of shares of Class I common stock to its offering of common stock which already included Class A common stock shares. The new Class I shares, which are available to accredited investors only, are available net of commission load and sold at the current price of $10.07 per share. The minimum investment for Class I shares is $50,000.
According to ARCTRUST III, the REIT aims to create value by focusing primarily on the manufacturing of new joint venture developments, with a focus on multifamily, industrial, medical, retail and self-storage.
“Due to increased interest among [registered investment advisers] and other fee-based platforms, we are pleased to expand the ARCTRUST III share class offerings,” said James Steuterman, chief executive officer.
“We remain committed to broadening our distribution network and providing more investors with a unique investment solution focused on the growth possible through the favorable spread between development, or manufacture, of reliable income properties and their subsequent stabilized value,” Steuterman added.
Since the REIT’s commencement in 2018, ARCTRUST III has issued more than 12 million Class A common stock shares generating gross proceeds of more than $125 million. Additionally, the REIT’s valuation has grown from $10 per Class A share in September 2018 to its current valuation of $10.83 per Class A share. The Class I shares price of $10.07 represents the $10.83 per Class A share valuation reduced by approximately 7%, which represents fees paid by investors purchasing through commission-based distribution channels.
In 2023, ARCTRUST III was assigned an investment grade credit rating of BBB from Egan-Jones Rating Company, a Securities and Exchange Commission-designated Nationally Recognized Statistical Rating Organization.
ARCTRUST Private Capital is an affiliate of the ARCTRUST Group of Companies, a vertically integrated real estate organization that, over the past 38 years, has been responsible for more than 500 transactions with an aggregate value more than $5 billion. ARCTRUST Private Capital focuses on delivering a diverse platform of investment solutions including real estate investment trusts, Regulation D offerings, Delaware statutory trusts, and preferred equity and debt products, while also providing investor access to private sidecar and property-specific investments in joint ventures and co-sponsored offerings.