MacKenzie Realty Capital, a publicly registered non-traded business development company, has launched an unsolicited tender offer to purchase up to one million shares of Cole Office & Industrial REIT (CCIT II) Inc. for $4.50 per Class A and Class T share. The tender offer expires on June 18, 2020.
Cole Office & Industrial REIT, a publicly registered non-traded real estate investment trust, recently declared a net asset value per share of $10.06 for its Class A and Class T shares of common stock, as of December 31, 2019.
In its letter to Cole Office & Industrial REIT shareholders, MacKenzie indicated that the REIT’s share redemption program is oversubscribed and approximately 11.9 million shares submitted for redemption went unfulfilled, according to its most recent annual report.
MacKenzie and its affiliates currently own approximately 11,000 shares of the REIT, or 0.02 percent of the outstanding.
Cole Office and Industrial REIT launched in September 2013 and invests primarily in single-tenant necessity office and industrial properties that are leased to creditworthy tenants under long-term, net leases. The company closed its primary offering in September 2016 after raising $672 million in investor equity. Cole Office and Industrial REIT is operated by CCO Group LLC, a subsidiary of CIM Group, a real estate and infrastructure owner, operator and lender.
MacKenzie Capital Management LP and its affiliates have been in the business of purchasing illiquid real estate securities, both in open market transactions and by means of tender offers, since 1982. The firm claims to have acquired more than $170 million in such securities for affiliated portfolios over the last 10 years. MacKenzie Realty Capital is advised by MCM Advisers LP.