KBS Growth & Income REIT Inc., a publicly registered non-traded real estate investment trust, is closing its primary offering at the end of the month, according to a filing with the Securities and Exchange Commission. The REIT plans to continue offering shares under its distribution reinvestment plan.
The board of directors approved the offering termination effective June 30, 2017 to prepare for and market an online private offering to accredited investors. Subscriptions for the primary public offering must be received in good order no later than June 30th.
In connection with the preparation of an online private offering, the company said that it expects to establish and announce an estimated net asset value per share of its common stock. Following the NAV announcement, the REIT’s advisor, KBS Capital Advisors, has agreed to pay stockholders any difference between the “net price paid” by stockholders and the estimated NAV per share. “Net price paid” is the gross purchase price paid by stockholders less selling commissions and dealer manager fees.
The payment will be funded entirely by the advisor without any reimbursement from the REIT and is ineligible for reinvestment through the distribution reinvestment plan. The company noted that the tax treatment of the payment is not entirely clear, and stockholders should consult with their tax advisor to determine the associated tax consequences.
KBS Growth & Income REIT expects to declare an estimated NAV and the stockholder payment to be made before the end of the third quarter of 2017.
KBS Growth & Income REIT was formed in January 2015 and has raised a combined $80 million in its private and public offerings, the latter of which commenced in April 2016. The company currently owns three properties with an investment cost of $136.8 million, according to Summit Investment Research.