NexPoint Multifamily Capital Trust to Change Name and List on NYSE
NexPoint Multifamily Capital Trust Inc., a publicly registered non-traded real estate investment trust, terminated its $1 billion offering and deregistered its remaining Class A and Class T shares, according to a filing with the Securities and Exchange Commission.
The company also filed a registration statement with the SEC to reclassify its Class A shares as common stock, eliminate its Class T shares, and change its name to NexPoint Real Estate Finance Inc.
The company plans to offer an undisclosed number of shares of common stock and list on the New York Stock Exchange under the ticker symbol NREF. The move is intended to facilitate company growth and offer shareholders an opportunity to gain liquidity, the company said.
NexPoint Real Estate Finance intends to qualify as a REIT that focuses on providing structured financing for properties that have a broad tenant base and short-term leases, including mid-sized multifamily, storage, and select-service and extended-stay hospitality properties and companies.
The proceeds may also be used to fund seven previously identified preferred equity investments totaling $48.5 million, pay down its KeyBank credit facility, redeem all of the 125 outstanding shares of Series A preferred stock, and buyout the non-controlling joint venture interest in its Phoenix multifamily property.
The company is externally managed and advised by NexPoint Real Estate Advisors II LP, an affiliate of Highland Capital Management LP.
NexPoint Multifamily Capital Trust’s previous investment strategy focused on preferred equity investments, mezzanine loans, bridge loans and first mortgages, as well as directly purchased Class A multifamily properties located in the Southeastern and Southwestern United States.
The offering was declared effective in August 2015 and raised $10.2 million in investor equity, as of July 20th. The company’s investment portfolio consists of a majority interest in a $48.6 million multifamily property located in Phoenix and a $5.25 million preferred equity investment in a multifamily property located in San Antonio.
