Resource Apartment REIT III Amends Share Class Structure and Ameriprise Selling Agreement
Resource Apartment REIT III Inc., a publicly registered non-traded real estate investment trust, is now offering Class R and Class I shares in its initial public offering and will no longer sell Class A and Class T shares, according to a filing with the Securities and Exchange Commission.
Class R shares are priced at $9.52 and include a maximum 3 percent selling commission, a dealer manager fee of up to 3.5 percent, and a 1 percent annual distribution and shareholder servicing fee paid to Resource Securities Inc, the dealer manager. The total amount of selling commissions and dealer manager fees paid for selling Class R cannot exceed 5.5 percent.
Class I shares are priced at $9.13 and include a 1.5 percent dealer manager fee and no selling commissions or distribution and shareholder servicing fees.
The company previously paid selling commissions of up to 7 percent for the sale of Class A shares and 2 percent for Class T shares.
Class R shares are available to all qualified investors, while Class I shares are available to investors who purchase shares through fee-based programs, bank trust departments or other organizations that act in a fiduciary capacity, endowments, foundations, pension funds or other institutional investors. The minimum investment required for Class R and Class I shares is $2,500.
With respect to its distribution reinvestment plan, the REIT will continue to offer Class A, Class T, Class R, and Class I DRIP shares for $9.60, $9.09, $9.14, and $8.90 per share, respectively.
Resource Apartment REIT III also amended its selected dealer-manager agreement with Ameriprise Financial Services to allow Ameriprise to offer and sell Class R shares. Ameriprise will be reallowed a sales commission of up to 2 percent for selling Class R shares and a 1 percent distribution and shareholder servicing fee.
In other REIT news, the board appointed Alan Feldman as chairman to replace Kevin Finkel who resigned late last month, as reported by The DI Wire. Feldman, the company’s former chief operating officer and president, also replaced Finkle as CEO.
Feldman previously served as the REIT’s CEO and a director for six months in 2015, and has held CEO and director positions at various Resource affiliates since joining Resource America as a senior vice president in 2002. He received a bachelor’s and master’s degree from Tufts University, and a master of business administration degree with a concentration in real estate and finance from The Wharton School, University of Pennsylvania.
Resource Apartment REIT III invests in U.S. multifamily rental properties, as well as loans secured by multifamily rental properties. The company’s $1 billion offering was declared effective in April 2016 and has raised $15.7 million in investor equity since inception. As of the first quarter of 2017, the company owned one multifamily property purchased for $2.5 million, according to Summit Investment Research.
