CNL Growth Properties Declares Special Distribution
CNL Growth Properties, a publicly registered non-traded real estate investment trust, declared a special cash distribution of $52.9 million, or $2.35 per share to stockholders of record as of August 24, 2016. The distribution, which will be paid around August 30th, stems from the sale of three multifamily communities: Whitehall Parc, Aura Castle Hills, and REALM Patterson Place.
At the annual meeting earlier this month, stockholders approved a plan of dissolution which is expected to take between 12 and 24 months to complete. The special cash distribution is the first made relating to the plan of dissolution and the third since the inception of the company.
In a letter to stockholders, the REIT noted that net proceeds are expected to range between $8.41 and $9.39 per share, including the $2.35 per share stockholders will soon receive. Combined with the 2015 special distribution of $3.00 per share, the company estimates that the total amount stockholders could receive is between $11.41 and $12.39 per share.
The company also revised their estimated net asset value from $8.65 to $6.30 per share to reflect the distribution.
In other CNL Growth Properties news, The DI Wire reported earlier this month that Everest REIT Investors, a private real estate investment firm, offered to purchase up to 1.1 million shares of the REIT’s common stock for $7.00 each. Shares were originally sold for $10.00 each.
CNL Growth Properties went effective in October 2009 and closed in April 2014 after raising $207 million in investor equity. The company’s portfolio now consists of 10 class A multifamily properties located in the Southeastern and Sun Belt regions of the United States.
