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InPoint Registers $2.2 Billion Follow-On Offering

InPoint Commercial Real Estate Income Inc., a publicly registered non-traded real estate investment trust, has registered a $2.2 billion follow-on offering.

InPoint Commercial Real Estate Income Inc., a publicly registered non-traded real estate investment trust, has registered a $2.2 billion follow-on offering, comprised of $2 billion in shares of common stock and $200 million in distribution reinvestment plan shares, according to a filing with the Securities and Exchange Commission. The registration statement has not been declared effective by the SEC.

InPoint invests primarily in floating-rate commercial real estate debt, including first mortgage loans, subordinate mortgage and mezzanine loans. It raised $276.7 million in a private offering from October 2016 to July 2019 and $39.1 million in an initial public offering from May 2019 through March 2022.

According to the preliminary prospectus, the REIT plans to offer five classes of common stock: Class A, Class T, Class S, Class D, and Class I shares. The purchase price will equal the prior month’s net asset value per share, plus varying upfront selling commissions and dealer manager fees.

As of March 31, 2021, the NAV per share for each class were $19.86 per Class A share, $19.86 per Class T share, $19.82 per Class S share, $19.85 per Class D share, and $19.86 per Class I share.

Class A shares have a maximum selling commission of 6 percent, a maximum dealer manager fee of 1.25 percent, and no stockholder servicing fee.

Class T shares have a maximum selling commission of 3 percent, a maximum dealer manager fee of 0.5 percent, and a 0.85 stockholder servicing fee, comprised of a 0.65 percent advisor stockholder servicing fee and a 0.20 percent dealer stockholder servicing fee.

Class S shares have a maximum selling commission of 3.5 percent, no dealer manager fee, and a 0.85 stockholder servicing fee.

Class D shares have a 0.25 stockholder servicing fee and no selling commission or dealer manager fees.

Class I shares have no stockholder servicing fee, selling commission, or dealer manager fee.

The minimum initial investment is $2,500 for Class A, Class T, Class S, and Class D shares and $1 million for Class I shares.

Class A shares, Class T shares and Class S shares are available through brokerage and transaction-based accounts. Class D shares are generally available through fee-based programs, also known as wrap accounts, and Class I shares are generally sold to endowments, foundations, pension funds and other institutional investors.

InPoint is advised by an affiliate of Inland Real Estate Investment Corporation and sub-advised by an affiliate of Sound Point Capital Management LP. Inland Securities Corporation serves as the dealer manager.

As of March 31, 2022, InPoint’s portfolio consisted of $729.9 million in commercial mortgage loans, as well as a 362-room hotel located in Chicago, Illinois.

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