The board of Inland Residential Properties Trust Inc., a non-traded real estate investment trust sponsored by Inland Real Estate Investment Corporation, has approved a post-distribution estimated net asset value per share of $16.06 for the company’s Class A common stock, as of February 1, 2019.
In determining the NAV, the board took into account both the REIT’s obligation to repay outstanding debt and the estimated costs of liquidating, which includes transaction costs related to the sale of the real estate assets and the costs of continuing to operate the REIT while it winds up operations.
Shareholders approved the company’s plan of liquidation in December 2018, which includes selling the company’s assets, distributing the net cash to shareholders, and dissolving the company.
Last month, Inland Residential paid shareholders an initial liquidating distribution of approximately $4.53 per share funded from the sale of The Commons at Town Center, an 85-unit multifamily property located in Vernon Hills, Illinois.
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.
The REIT acquired The Commons at Town Center in May 2017 for $23 million and was sold on December 20, 2018 at a sales price of $24.6 million, representing an increase of 6.3 percent over the original acquisition price. At the time of sale, the property was 95.55 percent leased.
A second property, Verandas at Mitylene, was acquired in July 2017 for $36.6 million and is currently under contract to be sold for a sales price of $40.5 million, representing an increase of 10.7 percent over the original acquisition price.
The third property and last of the REIT’s three assets, The Retreat at Market Square, is currently in negotiations to be sold.
“We are pleased that the REIT has made such successful progress to date in executing our liquidity plan and anticipate that all of the REIT’s properties will be sold at sale prices greater than the purchase prices at which they were acquired,” said Mitchell Sabshon, president and CEO of Inland Residential Properties Trust.
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.