Resource Real Estate, a sponsor of non-traded real estate investment trusts, has disclosed the shareholder consideration for the proposed mergers of its three REITs, Resource Real Estate Opportunity REIT Inc. Resource Real Estate Opportunity REIT II Inc., and Resource Apartment REIT III Inc, to create a $3 billion self-managed REIT.
Last week, Resource Real Estate LLC announced that, if approved, Resource Real Estate Opportunity REIT II would acquire Resource Real Estate Opportunity and Resource Apartment REIT III in separate stock-for-stock transactions, and the combined company will be renamed Resource REIT.
Resource Real Estate Opportunity REIT stockholders are expected to receive 1.224230 shares of Resource Real Estate Opportunity REIT II valued at $11.12 per share.
Resource Apartment REIT III stockholders are expected to receive 0.925862 shares of Resource Real Estate Opportunity REIT II valued at $8.41 per share.
In addition, the company noted that the senior management team will include Resource senior executives that have been working together for the past 16 years
The closings of the proposed mergers are expected to close in the fourth quarter of 2020.
Resource Real Estate Opportunity REIT launched in June 2010 and raised $645.8 million in investor equity prior to closing in December 2013. As of June 30, 2020, the company’s $920 million portfolio included 28 multifamily properties and one performing loan.
Resource Real Estate Opportunity REIT II’s primary offering launched in February 2014, closed in February 2016 and raised $645 million in equity, as of the third quarter of 2019. As of June 30, 2020, the REIT’s $717 million investment portfolio included 17 multifamily properties.
Resource Apartment REIT III’s offering was declared effective in April 2016 and raised roughly $117 million in investor equity, as of June 30, 2020. The offering closed in October 2019. The REIT’s $191 million investment portfolio was comprised of six multifamily properties, as of the second quarter 2020.
Resource Real Estate LLC, the REITs’ sponsor, is an asset management company that specializes in real estate investments. The REITs collectively own approximately $3 billion of multifamily assets across 16 states as of June 30, 2020. Resource is an indirect, wholly-owned subsidiary of C-III Capital Partners LLC, a commercial real estate investment management and commercial real estate services company.