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Sep 13 2017

FS Investments Non-Traded REIT Declared Effective by the SEC

FS Credit Real Estate Income Trust, a $2.5 billion non-traded real estate investment trust sponsored by FS Investments, formerly Franklin Square, was declared effective by the Securities and Exchange Commission.

This is the first non-traded REIT sponsored by FS Investments, which is the largest manager of non-traded business development companies in the industry.

FS Credit Real Estate Income Trust, which is advised by FS Real Estate Advisor and sub-advised by Rialto Capital Management, plans to invest in floating-rate mortgage loans that are secured by first-priority mortgages on transitional commercial real estate properties. The REIT may also invest in other real estate-related assets and commercial real estate securities. The dealer manager is FS Investment Solutions.



The company is offering five shares classes: Class T, Class T-C, Class D, Class M and Class I shares. The purchase price will vary daily based on the net asset value per share, but will initially cost $25.00 each.

Class T shares are priced at $26.11 and include a 3 percent selling commission, a 1.25 percent dealer manager fee, and a 1 percent annual stockholder servicing fee that is expected to be paid for approximately three years. Fees and selling commissions are capped at 7.25 percent, and the minimum initial investment is $5,000.

Class T-C shares are priced for $25.78 and include a 3 percent selling commission, an annual 0.85 percent stockholder servicing fee paid for approximately five years. Total selling commissions and stockholder servicing fees are capped at 7.25 percent. The minimum initial investment is $5,000.

Class D shares are priced at $25.00 and have no selling commissions or dealer manager fees, but include a 0.3 percent annual stockholder servicing fee that is capped at 1.25 percent and paid for approximately four years. The minimum initial investment is $5,000.

Class M shares are priced at $25.00 and have no selling commissions or dealer manager fees, but include a 0.3 percent annual stockholder servicing fee paid for approximately 24 years. Fees and selling commissions are capped at 7.25 percent, and the minimum initial investment is $5,000.

Class I shares are priced at $25.00 and have no selling commissions, dealer manager fees, or stockholder servicing fees associated with their purchase. The minimum initial investment is $1 million.

Class T and Class T-C shares are available through brokerage and transactional-based accounts, while Class D, Class M and Class I shares are generally available through fee-based programs. Class I shares are available for purchase by endowments, foundations, pension funds and other institutional investors.

For more FS Investments news, visit their directory page here.

Article by: The DI Wire


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