Griffin-American Healthcare REIT IV Now Selling Class I Shares
Griffin-American Healthcare REIT IV, Inc., a publicly registered non-traded real estate investment trust co-sponsored by Griffin Capital Corp and American Healthcare Investors, reported that its class I shares of common stock are now effective and available for purchase.
Last month, the company’s board of directors approved a reallocation of the new share class in its public offering. The REIT will now offer up to $2.8 billion in class T shares and up to $200 million in class I shares.
Griffin’s new share class reflects a growing number of sponsors that are moving away from fee-based share classes, with low and no-load share classes increasing in popularity.
Class I shares will initially be sold for $9.30 each and have no selling commissions or stockholder servicing fees associated with their purchase. The REIT’s dealer manager will receive a fee of up to 3 percent of the gross offering proceeds, of which 2 percent will be funded by the REIT’s advisor, and 1 percent will be funded by the REIT. Class I DRIP shares will be offered for $9.50 each.
Healthcare REIT IV’s class I shares are only available for investors to purchase through fee-based programs, or wrap accounts; participating broker-dealers that have alternative fee arrangements with their clients; or through certain registered investment advisers. Shares can also be purchased through bank trust departments or any other organization or person authorized to act in a fiduciary capacity for its clients or customers. Endowments, foundations, pension funds or other institutional investors can also purchase the new shares.
Griffin-American Healthcare REIT IV signed an agreement last month to purchase its first property, a 19,000-square-foot medical office building in the Sacramento suburb of Auburn, California. The REIT commenced its initial public offering in February 2016 and has raised approximately $9.9 million in investor equity since inception.
