Liquidity Partners Trust I, a Delaware statutory trust, has launched an unsolicited tender offer to purchase up to 100,000 shares of non-traded real estate investment trust Steadfast Income REIT Inc. for $5.73 per share. The offer expires on January 25th, 2019.
Steadfast Income REIT declared a net asset value of $10.84 per share as of December 31, 2017. The valuation was later revised to $9.84 following the payment of a $1.00 per share special distribution to shareholders.
The updated NAV is $4.11 higher than Liquidity Partners’ offer price on a per share basis. Shares were originally sold for $10.00 each, and the REIT has paid approximately $6.00 in total distributions to its earliest investors.
Steadfast Income REIT informed shareholders that it takes no position and remains neutral as to whether stockholders should accept or reject the Liquidity Partners offer. “Each stockholder must independently evaluate whether to tender its shares to Liquidity Partners,” the board said.
Liquidity Partners Trust I and its affiliates currently own 400 shares of Steadfast Income, and will pay $573,000 is all shares in the current offer are tendered and would own approximately 0.13 percent of the outstanding shares.
Steadfast Income REIT invests primarily in the multifamily sector, including stable, income-producing and value-added properties. The REIT’s primary offering launched in July 2010 and closed in December 2013 after raising $745 million in investor equity. As of the third quarter of 2018, the company owned 39 multifamily properties purchased for approximately $1.1 billion.
In November 2017, the company and Blackstone Real Estate Income Trust formed a joint venture with respect to 20 of the 63 apartment communities owned by the REIT. Blackstone’s non-traded REIT acquired a 90 percent ownership interest in the 20-apartment community portfolio for approximately $460.8 million in cash and debt assumption. The companies also entered in an investment agreement where Steadfast would seek additional multifamily investments on behalf of both REITs.
Liquidity Partners Trust I was formed to provide liquidity to investors of non-traded REITS and other non-traded alternative investments.