The follow-on offering for Carter Validus Mission Critical REIT II Inc., a publicly registered non-traded real estate investment trust, has been declared effective by the Securities and Exchange Commission. The company closed its initial public offering on November 24th after raising $1.2 billion in investor equity.
The $1 billion follow-on offering will consist of three classes of shares, including Class A, Class I, and Class T shares of common stock. The REIT intends to offer the shares in this offering for a period of 9-12 months.
Class A shares are priced at $10.20 per share and include a 7 percent selling commission and 3 percent dealer manager fee.
Class I shares are priced at $9.27 each and include a 1 percent dealer manager fee and no selling commission. The dealer manager may receive up to 2 percent of the gross offering proceeds from the sale of Class I shares as a dealer manager fee, of which 1 percent will be funded by the REIT’s advisor, Carter Validus Advisors II LLC, without reimbursement. The 1 percent of the dealer manager fee paid from offering proceeds will be waived if an investor purchases Class I shares through a registered investment adviser that is not affiliated with a broker-dealer. In that case, Class I shares would be priced at $9.18.
Class T shares are priced at $9.77 and include a 3 percent selling commission, a 3 percent dealer manager fee, and an annual 1 percent distribution and servicing fee.
SC Distributors LLC serves as the dealer manager in the offering.
The REIT recently updated its estimated per share net asset value to $9.18 for Class A, Class I, and Class T shares of common stock, as of June 30, 2017. The company’s previous NAV per share was $9.07, which was the first declared by the company in October 2016.
Carter Validus Mission Critical REIT II, which invests in net leased data center and healthcare assets, went effective in May 2014. The REIT’s portfolio is comprised of 63 properties (20 data center and 43 healthcare properties) that were purchased for approximately $1.4 billion.