Everest Amends CNL Growth Properties Tender Offer Following Special Distribution
Everest REIT Investors, a private real estate investment firm, amended its tender offer for shares of CNL Growth Properties from $7.00 to $4.65 per share. The price cut reflects the $2.35 special distribution paid to investors of the non-traded REIT this week after selling three multifamily communities in its portfolio. Everest is still seeking to purchase up to 1.1 million shares, but for an amended total of $5.1 million. The offer will expire on October 4th.
CNL Growth stockholders approved a plan of dissolution earlier this month which is expected to take between 12 and 24 months to complete. The REIT expects net proceeds to range between $8.41 and $9.39 per share, including the $2.35 distribution. Combined with the 2015 special distribution of $3.00 per share, the company estimates that the total amount stockholders could receive is between $11.41 and $12.39 per share. Shares were originally sold for $10.00 each, and have a current estimated net asset value of $6.30 per share.
CNL Growth Properties went effective in October 2009 and closed in April 2014 after raising $207 million in investor equity. The company’s portfolio now consists of 10 class A multifamily properties located in the Southeastern and Sun Belt regions of the United States.
