CNL Growth Properties Continues Liquidation Plan
CNL Growth Properties Inc., a publicly registered non-traded REIT, is moving forward with its plan of liquidation by selling or agreeing to sell two joint venture-owned properties.
A CNL Growth joint venture with Trinsic Residential Group sold Aura Grand Corners, a 291-unit, class A multifamily community located in the Houston suburb of Katy, Texas for $41.2 million. The net cash to the REIT, which has a 90 percent interest in the venture, is approximately $14.3 million after repayment of $21.3 million of debt, closing costs, reserves, and distributions to Trinsic, according to a filing with the SEC.
In other REIT news, a CNL Growth joint venture with Crescent Gateway Venture agreed to sell Crescent Gateway for approximately $49.1 million. Crescent Gateway is a 249-unit class A multifamily community in the Orlando suburb of Altamonte Springs, Florida. The joint venture originally purchased and developed the property for approximately $38.2 million.
CNL Growth’s plan of liquidation and dissolution was approved by shareholders in August and is expected to take between 12 and 24 months to complete.
In August, CNL Growth Properties paid stockholders a special cash distribution of $52.9 million, or $2.35 per share from the sale of three multifamily communities: Whitehall Parc, Aura Castle Hills, and REALM Patterson Place. The special cash distribution was the first made relating to the plan of dissolution and the third since the inception of the company.
CNL Growth Properties went effective in October 2009 and closed in April 2014 after raising $207 million in investor equity. The company’s portfolio consists of 10 class A multifamily properties located in the Southeastern and Sun Belt regions of the United States.
