Griffin Capital and Phillips Edison to Launch $1.7 Billion Non-Traded REIT
Griffin Capital Company and Phillips Edison LP filed a registration statement for Phillips Edison Grocery Center REIT III, a $1.7 billion non-traded real estate investment trust, according to documents filed with the Securities and Exchange Commission.
Phillips Edison Grocery Center REIT III is planning to offer up to $1.5 billion of Class T and Class I shares of common stock in the primary offering and $200 million shares allocated for the distribution reinvestment plan. The minimum purchase is $2,500.
The REIT plans to use the proceeds to acquire and manage grocery-anchored shopping centers that are at least 80 percent occupied, have a mix of national, regional and local tenants selling necessity-based goods and services, and are anchored by a leading grocery provider.
PECO-Griffin REIT Advisor serves as the company’s advisor, of which Phillips Edison LP owns 75 percent and Griffin Capital Company owns the remaining 25 percent.
Class T shares are priced at $10.00 each and include a 3 percent selling commission, a 3 percent dealer manager fee, and an annual 1 percent stockholder servicing fee capped at 4 percent. Two-thirds of the dealer manager fee will be funded by the advisor, and the remainder will be funded by the REIT.
Class I shares are priced at $9.15 each and have 1.5 percent dealer manager fee and no selling commissions or stockholder servicing fee. The dealer manager fee for Class I shares will be funded by the REIT’s advisor.
The company previously raised approximately $9.3 million from the sale of Class A shares in private transactions.
Class A, Class T, and Class I DRIP shares are priced at $9.40 per share. Class A DRIP shares will only be sold to stockholders who previously purchased Class A shares in the private offering.
Griffin Capital Securities serves as the dealer manager for the current offering.
Phillips Edison Grocery Center REIT I and II were originally co-sponsored and advised by AR Capital and its affiliates, and Realty Capital Securities served as the dealer manager for both REITs.
Phillips Edison Grocery Center REIT I launched in August 2010 and raised nearly $1.8 billion before closing the offering in the first quarter of 2014. Shares were originally sold for $10.00 each. The company’s portfolio consists of 154 properties with a combined purchase price of approximately $2.5 billion.
Phillips Edison Grocery Center REIT II launched in November 2013 and raised nearly $1.2 billion before closing the offering in September 2015. Shares were originally sold for $25.00 each. The company’s portfolio consists of 78 properties purchased for approximately $1.6 billion.