InPoint’s $2.2 Billion Follow-On Offering Declared Effective
The SEC declared InPoint Commercial Real Estate Income Inc., a publicly registered non-traded real estate investment trust, second follow-on offering, comprised of $2.2 billion in shares of common stock and $200 million in distribution reinvestment plan shares to be effective.
InPoint Commercial Real Estate Income Inc., a publicly registered non-traded real estate investment trust, reported that its follow-on offering, comprised of $2 billion in shares of common stock and $200 million in distribution reinvestment plan shares has been declared effective by the Securities and Exchange Commission.
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 June 2019 and $42.3 million in an initial public offering that commenced in May 2019 and terminated upon commencement of the follow-on offering this week. As of June 30, 2022, the company’s portfolio was comprised of 43 commercial mortgage loans valued at $803 million and the 362-room Renaissance Chicago O’Hare Suites Hotel.
According to follow-on offering’s prospectus, the REIT offers five classes of common stock: Class A, Class T, Class S, Class D and Class I shares. The purchase price of each share is equal to the prior month’s net asset value per share, plus varying upfront selling commissions and dealer manager fees.
As of June 30, 2022, the NAV per share for each class were $19.6714 per Class A share, $19.7096 per Class T share, $19.6639 per Class D share, and $19.6679 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.
