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CNL Growth Properties Increases Net Asset Value

CNL Growth Properties, a publicly registered non-traded real estate investment trust, declared an estimated net asset value of $5.01 per share, as of December 31, 2016.

The company’s previous estimated NAV of $4.00 per share was declared on December 8th after issuing a $2.30 liquidating cash distribution the same day.

CNL Growth Properties stockholders recently approved a plan to liquidate and dissolve the company. In 2015, the REIT sold four properties and declared two special cash distributions totaling $3.00 per share. In 2016, the company sold six multifamily communities totaling $102.1 million and paid shareholders two liquidating cash distributions totaling $4.65 per share. Shares were originally priced at $10.00 each.

The REIT utilized IPA valuation guidelines and engaged CBRE, an independent appraisal firm, to provide updated real estate appraisals for the seven remaining properties in the portfolio.

CNL Growth Properties, formerly known as Global Growth Trust, commenced its $1.5 billion initial public offering in October 2009. In April 2013, the REIT closed the offering after raising approximately $94.2 million and changed its name to CNL Growth Properties. In August 2013, the company initiated a follow-on offering and refined its investment focus on multifamily development projects in the Southeast and Sun Belt regions of the U.S. The combined offerings raised a total of $208 million in investor equity.

CNL Growth Properties’ portfolio currently consists of seven class A multifamily properties.

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