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CNL Growth Properties Declares Special Liquidating Distribution

The board of CNL Growth Properties Inc., a publicly registered non-traded real estate investment trust, declared a liquidating cash distribution of $2.30 per share relating to the sale of two properties, Crescent Gateway Property and the City Walk Property. The company also revised its net asset value to reflect the distribution.

This latest liquidating distribution is the second issued by the company since shareholders approved a plan of dissolution in August. It will be paid on December 8th to the stockholders of record as of December 6, 2016.

CNL Growth Properties had a $10.70 per share NAV as of December 31, 2014, and made a special distribution of $3.00 per share in 2015. In January of this year, the REIT’s board approved an estimated net asset value of $8.65 per share as of December 31, 2015, which was revised to $6.30 per share after paying stockholders $2.35 per share in August. Once the latest distribution is paid, the NAV will be revised to $4.00 per share, and the company plans to announce a new estimated NAV as of December 31, 2016 in the first quarter of 2017.

A CNL Growth joint venture recently sold Crescent Gateway, a 249-unit class A multifamily community in the Orlando suburb of Altamonte Springs, for $49.1 million. The net cash to the REIT from the sale of Crescent Gateway is approximately $10.4 million after repayment of approximately $28.3 million of debt, closing costs, reserves, and distributions to the joint venture partner.

Another REIT joint venture sold Roswell City Walk, a class A 320-unit multifamily property located in the Atlanta suburb of Roswell Georgia. An affiliate of Bluerock Real Estate purchased the property earlier this month for approximately $76 million. The net cash proceeds from the sale totaled approximately $22.3 million after repayment of approximately $31 million of debt, closing costs, reserves, and distributions to its joint venture partner.

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 8 class A multifamily properties located in the Southeastern and Sun Belt regions of the United States.

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