Everest REIT Investors I, a private real estate investment firm, offered to purchase up to 950,000 shares of common stock in KBS Legacy Partners Apartment REIT Inc. for $7.50 each. The offer, which constitutes roughly 5.01 percent of the outstanding shares, expires on February 6, 2017. If all shares are tendered Everest will pay a total of $7.1 million.
KBS Legacy Partners Apartment REIT, a non-traded real estate investment trust sponsored by KBS Capital Advisors and affiliates of Legacy Partners Residential Realty, closed its offering in March 2014 after raising approximately $200 million in investor equity. KBS Legacy REIT had 20.8 million shares outstanding as of November 4, 2016, and Everest REIT Investors and its affiliates currently own 94,217 shares of the REIT.
As reported by The DI Wire last month, KBS Legacy Partners declared an estimated per share net asset value of $9.35, as of September 30, 2016. The Everest tender offer price of $7.50 per share is $1.85 less than the REIT’s estimated NAV, a discount of 19.8 percent. Shares were originally sold to investors for $10.00 each.
As of September 30, 2016, KBS Legacy Partners’ $468.4 million portfolio was comprised of 11 multifamily properties.