The board of Cole Office & Industrial REIT Inc. (CCIT III), a publicly registered non-traded real estate investment trust, has approved an estimated net asset value per share of $7.63 for the company’s Class A and Class T common stock, as of March 31, 2020.
The board previously determined an NAV per share of $7.60 as of December 31, 2019, and the REIT’s first NAV per share was $8.60, as of December 31, 2018. Shares originally sold for $10.00 each.
The NAV per share is based on an estimated market value of the REIT’s assets, less the estimated market value of its liabilities, divided by the total number of Class A and Class T shares outstanding, as of March 31, 2020.
Duff & Phelps assisted with the valuation process, which was performed in accordance with the Institute for Portfolio Alternatives’ guidelines, the company said. Their analysis included a $7.25 to $8.01 per share valuation range, and $7.63 per share is the approximate mid-point.
Cole Office and Industrial REIT III commenced operations in September 2016 and invests primarily in single-tenant office and industrial properties that are leased to what it deems as creditworthy tenants under long-term, net leases. As of the first quarter of 2020, the REIT raised $31.2 million in investor equity before closing its offering in December 2019. The company owns a portfolio of two properties purchased for $49.2 million. The REIT is operated by CCO Group LLC, a subsidiary of CIM Group, a real estate and infrastructure owner, operator and lender.