United Development Funding Income Fund V (UDF V) has been declared effective by the SEC. The newly organized entity intends to qualify as a real estate investment trust (REIT) for federal income tax purposes with its taxable year ending December 31, 2014.
The public offering aims to sell up to 37,5000,000 common shares of beneficial interest at $20 per share and over 13 million shares through its distribution reinvestment plan for $19 per share.
UDF V will invest its net proceeds in secured loans and other real estate assets with the goal of generating current interest income and producing profits.
The minimum investment for non-qualified accounts is $2,500.
Realty Capital Securities, LLC, is the exclusive dealer manager for the offering, which is expected to terminate on or before July 25, 2016 unless extended by its board of trustees.
Founded in 2003, United Development Funding, the sponsor of UDF V, has sponsored three private placements and two public offerings. Just recently, United Development Funding IV, a former non-traded REIT, listed on the NASDAQ in June under the symbol “UDF.”