CNL Healthcare Properties II Lowers Fees
CNL Healthcare Properties II Inc., a publicly registered non-traded real estate investment trust, amended its dealer manager agreement with CNL Securities Corp. to reduce the sales commissions, dealer manager fees, and ongoing annual distribution and stockholder servicing fees paid to the dealer manager and participating broker-dealers associated with the sale of Class A, Class T or Class I shares. The shares are priced at $10.00 each plus applicable sales commissions and fees.
For Class A shares sold in the primary offering, the REIT will pay the dealer manager a maximum combined selling commission and dealer manager fee of 8.5 percent of the sale price for each Class A share. The maximum selling commission is 6 percent and the maximum dealer manager fee is 2.5 percent. Previously, Class A shares included a 7 percent selling commission and 2.75 percent dealer manager fee.
For Class T shares sold in the primary offering, the REIT will pay the dealer manager a maximum combined selling commission and dealer manager fee of 4.75 percent, and the selling commissions must not exceed 3 percent of the gross proceeds of Class T shares sold in the primary offering.
For Class T and Class I shares, the REIT will stop paying the 1 percent annual distribution fee and 0.5 percent stockholder servicing fee if the total underwriting compensation paid to broker-dealers for selling the shares exceeds 8.5 percent of the shares’ gross offering price. Previously, the maximum underwriting compensation for the two share classes was 9.75 percent.
CNL Healthcare Properties II commenced its $1.75 billion initial public offering in March 2016 and broke escrow in July. The company intends to invest in senior housing, medical office, acute care and post-acute care properties. The REIT, which signed an agreement to purchase its first property last month for $21.5 million, has raised approximately $10 million in investor equity since inception.
