Skip to content

CNL Healthcare Properties II Breaks Escrow

CNL Healthcare Properties II Inc., a publicly registered non-traded real estate investment trust, has raised proceeds sufficient to break escrow in all states except Ohio, Pennsylvania and Washington through its continuous public offering. The REIT sold 250,000 class A shares to its external advisor, CHP II Advisors LLC, for $2.5 million.

The board of directors is expected to authorize and establish monthly distribution rates during the third quarter of 2016.

“CNL has a strong history of success in the seniors housing and healthcare markets, most recently with CNL Healthcare Properties, and we are excited to build upon that foundation with CNL Healthcare Properties II,” said Stephen Mauldin, president and chief executive officer of the REIT

CNL Healthcare Properties II noted that it is offering multiple share classes to provide broker-dealers and their potential investors with more investment flexibility in response to recent regulatory changes.

According to SEC filings, class A shares are priced at $11.08 per share, with a 7 percent selling commission and a 2.75 percent dealer manager fee.

Class T shares are priced at $10.50 per share, with a 2 percent selling commission and a 2.75 percent dealer manager fee. In addition, the company will pay a trailing commission, called an “annual distribution and stockholder servicing fee” in an amount equal to 1 percent of the then-current primary offering price, payable on a quarterly basis. The trail commission is emerging as a popular structure in the face of FINRA Rule 15-02, which requires investor statements to reflect the impact of sales load.

Class I shares are priced at $10.00 per share and have no front end fees, therefore, there are no selling commissions or dealer manager fees. The annual distribution and stockholder servicing fee is 0.50 percent per class I share, payable on a quarterly basis.

The original CNL Healthcare Properties I was declared effective in June 2011. The company closed its follow-on offering in September 2015 after raising a total of $1.7 billion over the course of its two offerings.

About CNL Healthcare Properties II intends to invest in the seniors housing, medical office, acute care and post-acute care sectors. CNL Financial Group is a private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $33 billion in assets.

Click here to visit The DI Wire directory page.