MacKenzie Completes Benefit Street Partners Realty Trust Tender Offer

MacKenzie Realty Capital Inc., a non-traded business development company, purchased 11,805 shares of Benefit Street Partners Realty Trust Inc. for $12.05 each in its latest tender offer. MacKenzie paid approximately $142,000 for the shares and now owns less than .04 percent of the total outstanding shares.

MacKenzie offered to purchase up to 500,000 shares of the non-traded REIT formerly known as Realty Finance Trust. The REIT appointed Benefit Street Partners as its new advisor at the end of September 2016, replacing AR Global Investments – formerly AR Capital.

Benefit Street Partners Realty Trust urged its stockholders to reject the tender offer, stating that it is “substantially below the estimated net asset value per share of $20.05.” The offer price represents a 40 percent discount to the most recent NAV per share that was approved by the board in November 2016.

The REIT also noted that it currently offers a share repurchase program, and in January 2017, paid an average of $19.23 for nearly 473,806 shares repurchased from its stockholders. Shares were originally sold for $25.00 each.

Benefit Street Partners Realty Trust focuses on commercial real estate debt investments secured by income-producing properties and targets loans and securities – diversified by duration, geographic location, property type, ownership, and tenancy. The REIT commenced operations in November 2012 and raised $786 million in investor equity prior to closing the offering in January 2016. As of September 30, 2016, the company’s portfolio consisted of 73 loans and 7 CMBS investments.

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