The board of Inland Residential Properties Trust Inc., a publicly registered non-traded real estate investment trust, has approved a liquidity event for the company, according to a letter sent to shareholders.
“After careful consideration of various strategic alternatives, the board has determined that, at this time, the sale of the company’s assets and distribution of all net cash proceeds through a plan of liquidation is the best strategy to maximize stockholder value within a reasonable period of time,” the letter stated.
Shareholders will vote on the company’s plan of liquidation at the annual stockholders’ meeting scheduled on November 27, 2018.
In connection, the company will terminate its distribution reinvestment plan and share repurchase program, noting that since it plans to distribute all net cash proceeds from the liquidity event, “the need for such plans no longer exists.”
Distributions for the months of September and October 2018, payable in October and November 2018, respectively, will be paid by either check or direct deposit. For IRAs and other qualified accounts, distributions will be paid to the trust company of record.
Additional details will be reported as soon as they are disclosed.
Inland Residential Properties Trust’s $1 billion offering was declared effective in February 2015 and raised approximately $47 million in investor equity before closing at the end of 2017, according to Summit Investment Research. The company invests in multifamily properties located primarily in the top 100 U.S. metropolitan statistical areas and owns three assets purchased for approximately $104 million.
In February 2018, the REIT declared its first net asset value per share of $23.15 for Class A shares, $24.32 for Class T shares, and $23.55 for Class T-3. Shares were originally sold for $25.00.