Strategic Student & Senior Housing Trust Inc., a publicly registered non-traded real estate investment trust sponsored by SmartStop Asset Management LLC, has suspended the sale of Class A, Class T, and Class W shares in its $1 billion primary public offering. The company also registered two new share classes, Class Y and Class Z shares, and intends to sell the shares to the public once the amendment is declared effective by the SEC.
The REIT will continue to offer shares of Class A, Class T, and Class W common stock under the distribution reinvestment plan.
Class Y and Class Z shares will be priced at $9.30 per share. All investors may purchase Class Y shares in the offering, while Class Z shares are only available to certain categories of investors, including those that purchase through fee-based programs or registered investment advisers. The offering will continue until May 1, 2020, which is two years after the initial effective date.
Class Y shares have sales commissions of up to 3 percent and dealer manager fees of up to 3 percent. There are no sales commissions or dealer manager fees associated with Class Z shares.
The advisor, SSSHT Advisor LLC, will be responsible for paying the sales commissions, dealer manager fees, and organizational and offering expenses related to the sale of Class Y shares. They will also pay the organizational and offering expenses related to the sale of Class Z shares, without reimbursement.
The advisor may stop paying these fees and expenses in its sole discretion once the REIT raises $250 million in gross offering proceeds from the sale of Class Y shares in the primary offering.
In addition, Class Y shares have a 1.0 percent stockholder servicing fee, and Class Z shares have a 0.5 percent dealer manager servicing fee, both paid to the dealer manager, Select Capital Corporation.
Strategic Student & Senior Housing Trust, which invests in income-producing student housing and senior housing real estate assets, owns a portfolio of four senior housing communities and two student housing communities purchased for approximately $275 million. The company raised approximately $93 million from its private offering which ended in March 2018, and its public offering was declared effective in May 2018. As of June 14, 2019, the REIT had raised $5.1 million in investor equity in its primary public offering.