Cole Office & Industrial REIT III Declared Effective by SEC

Cole Office & Industrial REIT III, a publicly registered non-traded real estate investment trust, was declared effective by the Securities & Exchange Commission. The company, which intends to invest primarily in single-tenant, income-producing, necessity office and industrial properties, seeks to raise up to $3.5 billion from the sale of its class A and class T shares of common stock and distribution reinvestment plan shares. Shares will be offered until September 22, 2018.

The class A shares are priced at $10.00 per share, with a 7 percent selling commission ($0.70) and a 2 percent dealer manager fee ($0.20).

The class T shares have a purchase price of $9.57 each, with a 3 percent selling commission ($0.29) and a 2 percent dealer manager fee ($0.19).

Class T shares also include a 1 percent annual distribution and stockholder servicing fee paid on a monthly basis and will no longer be paid once it reaches 4 percent of the stockholder’s total investment in the class T shares.

Class A and class T DRIP shares are both priced at $9.10 each.

According to the SEC filing, VEREIT Inc. (NYSE: VER), Cole’s parent company, said that it or one of its affiliates intends to purchase at least $2.5 million in class A shares of common stock in this offering for $9.10 per share, but no binding agreement currently exists.

The previous Cole Office & Industrial REIT II was declared effective in September 2013 and has raised $661.6 million since inception. The REIT owns 32 properties located in 18 states that were purchased for a total of $1 billion.

For more Cole related news, visit their Directory Listing here.