MacKenzie Realty Capital Inc., a non-traded business development company, amended its tender offer to purchase units of Resource Real Estate Investors 7. The company is now offering $2.50 per unit for up to 400,000 units, or 12.24 percent of all outstanding.
Last week, The DI Wire reported that Mackenzie made a tender offer for 200,000 units at $5.00 each.
In a letter to RRE7 limited partners, Mackenzie rescinded its previous offer due to a previously undisclosed $1.92 per unit distribution that was made on December 1st.
The distribution was the result of a property sale, which “made a distribution to limited partners of $6.3 million, 93 percent of which was a return of capital,” according to a filing with the Securities and Exchange Commission.
Mackenzie also explained that RRE7 had a previously undisclosed estimated net asset value of its units, which after the recent distribution, had decreased to $5.54.
Resource Real Estate Investors 7 is a Delaware limited partnership that owns and operates multifamily residential rental properties in Maine, Texas and South Carolina. The partnership is expected to terminate on March 28th of this year, but they could extend the date by two years.
MacKenzie Capital Management LP, a real estate investment management business based in Moraga, CA, has specialized in the area of discounted real estate securities and asset management since its formation in 1982.