The board of Cole Office & Industrial REIT Inc. (CCIT III), a publicly registered non-traded real estate investment trust, has approved and established an estimated net asset value per share of $8.60 for the company’s Class A and Class T common stock, as of December 31, 2018.
This is the first time that the board has determined an estimated NAV per share, and going forward, the company intends to publish an updated valuation on at least an annual basis.
The $8.60 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 December 31, 2018. Shares of Cole Office & Industrial REIT (CCIT III) originally sold for $10.00 each.
Cushman & Wakefield assisted with the valuation process, which was performed in accordance with the Institute of Portfolio Alternatives’ guidelines. Their analysis included an $8.04 to $9.19 per share valuation range, and $8.60 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 creditworthy tenants under long-term, net leases. According to Summit Investment Research, as of the third quarter of 2018, the REIT raised $29 million in investor equity and owned 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.