Institutional investor Oaktree Capital Management LP has filed registration statements with the Securities and Exchange Commission to launch a $2 billion non-traded REIT called Oaktree Real Estate Income Trust Inc. that plans to invest in a portfolio of income-producing real estate and real estate-related debt investments.
The REIT expects that 65-95 percent of its portfolio will be invested in office, multi-family and industrial assets, while the remainder will consist of private loans and traded securities. Oaktree Fund Advisors LLC serves as the REIT’s adviser, and SDDco Brokerage Advisors LLC is the dealer manager.
The offering consists of four classes of common stock, including Class T, Class S, Class D and Class I shares. During the escrow period, the shares will be priced at $10.00 each with different selling commissions, dealer manager fees and ongoing stockholder servicing fees that will not exceed 8.75 percent.
Class T shares, available through brokerage and transactional-based accounts, are priced at $10.35 and include a 3.0 percent selling commission, a 0.5 percent dealer manager fee, and an annual 0.85 percent stockholder servicing fee comprised of a 0.65 percent advisor fee and a 0.20 percent dealer fee.
Class S shares, available through brokerage and transactional-based accounts, are priced at $10.35 each and include a 3.5 percent selling commission, no dealer manager fee, and an annual 0.85 percent stockholder servicing fee.
Class D shares, available through fee-based programs, are priced at $10.05 each and include a 0.5 percent selling commission, no dealer manager fee, and an annual 0.25 percent stockholder servicing fee.
Class I shares, available to institutional investors, are priced at $10.00 and have no selling commissions, dealer manager fees, or stockholder servicing fees.
There is a $2,500 minimum initial investment for Class T, Class S and Class D shares, and a $1 million minimum initial investment for Class I shares.
The REIT’s sponsor, Oaktree Capital Management, is a leading global investment manager specializing in alternative investments, with $100.2 billion in assets under management as of December 31, 2017.
Oaktree is one of a number of institutional investment managers joining the non-traded REIT space since private equity giant The Blackstone Group (NYSE: BX) launched Blackstone Real Estate Income Trust at the end of 2016. The non-traded REIT space now includes such sponsors as Starwood Capital Group, Cantor Fitzgerald Investors, and Nuveen/TIAA.