CNL Growth Properties, a publicly registered non-traded real estate investment trust, has completed the liquidation of its portfolio according to the plan approved by shareholders in August 2016. The company closed on the sale of its final property, Haywood Reserve in Greenville, South Carolina for $53.8 million, as reported by The DI Wire.
“The successful liquidation of CNL Growth Properties occurred much quicker and, more importantly, generated significantly higher proceeds for our shareholders than we originally forecasted,” said Stephen Mauldin, president and CEO of CNL Growth Properties.
Next week, the company will issue its final cash distribution of $120.7 million, which equals $5.35 per share. The company’s most recent published estimated net asset value per share was $5.01.
The final distribution is in addition to the $7.65 per share in cash distributions that were paid to shareholders between February 2015 and December 2016, bringing total distributions to $13.00 per share.
Shareholders also received quarterly stock distributions between October 2010 and September 2014, which increased the number of shares held by a shareholder by 3.4 percent to 40 percent, depending on when the shares were originally purchased.
For example, shareholders who invested in CNL Growth Properties in December 2009 have received an additional 0.4 shares in the company for each share originally purchased. They will receive a total of $18.21 in distributions for each $10.00 invested. The shareholders who invested in April 2014 have received an additional 0.034 shares for each share originally purchased and will receive a total of $13.45 in distributions for each $11 invested.
During its life cycle, CNL Growth Properties developed 17 Class A rental communities in nine states with eight development partners. Total development costs were $623.6 million for the 17 projects, creating 4,930 new units in total. The portfolio was sold in 17 individual transactions for a total of $868.3 million.
CNL Growth Properties, formerly known as Global Growth Trust, commenced its initial public offering in October 2009. In April 2013, the REIT closed the offering after raising approximately $94.2 million and changed its name to CNL Growth Properties. In August 2013, the company initiated a follow-on offering and refined its investment focus on multifamily development projects in the Southeast and Sun Belt regions of the U.S. The combined offerings raised a total of $208 million in investor equity.