Resource Income Opportunity REIT to Close Offering
The board of Resource Income Opportunity REIT, a publicly registered non-traded real estate investment trust, unanimously voted to terminate the company’s initial public offering and deregister all shares of common stock that remain unsold.
The board of Resource Income Opportunity REIT, a publicly registered non-traded real estate investment trust, unanimously voted to terminate the company’s initial public offering and deregister all shares of common stock that remain unsold. The company is sponsored by Resource Real Estate Inc., a subsidiary of Resource America Inc.
In 2017, the company restructured its $1.1 billion initial public offering into a perpetual-life entity and changed its name from Resource Innovation Office REIT to Resource Income & Opportunity REIT, and later to Resource Income Opportunity REIT.
In the third quarter of 2017, the REIT purchased all of the outstanding shares of common stock with the help of their advisor, Resource IO Advisor LLC, which loaned the company nearly $1.4 million to complete the tender offer. The advisor, Resource America, and members of the board currently own all of the outstanding common equity.
The board determined that it is in the best interest of shareholders to dissolve and liquidate the company and adopt a liquidation plan, which was approved this week. As such, the company will be liquidated and dissolved “as soon as practicable.”
In connection with closing the offering, the board authorized the repurchase of the approximately 7,000 vested shares of common stock which were held by board members for $68,400, while all non-vested shares were forfeited. Additionally, the company’s distribution reinvestment plan and share repurchase plan were terminated this week.
Resource Income Opportunity REIT broke escrow with a $2.1 million of equity investment from its sponsor’s parent company in the first quarter of 2016 and has raised $3 million equity as of the fourth quarter of 2017. The REIT’s portfolio is comprised of one mixed-use property in Chicago that it purchased for approximately $7.3 million.
