Resource Innovation Office REIT Reveals Additional Restructuring Details
Resource Innovation Office REIT Inc., a publicly registered non-traded real estate investment trust, has changed its name and renamed its Class T shares amid its restructuring plans that were reported by The DI Wire in April.
The REIT is sponsored by Resource Real Estate Inc., a subsidiary of Resource America, and is planning to restructure its $1.1 billion initial public offering into a perpetual-life entity. The REIT said that it plans to revise its fee structure to reduce the upfront fees paid by investors and reduce compensation to its advisor, Resource Innovation Office Advisor.
According to a filing with the Securities and Exchange Commission, the company will now be called Resource Income & Opportunity REIT, and Class T shares will now be called Class AA shares.
The REIT’s board recently suspended sales of Class A and Class T shares in the offering, and suspended the company’s distribution reinvestment plan effective May 1st and share repurchase program effective May 21st. The company said that it anticipates resuming share sales, and amending and reinstating the DRIP and SRP, once the restructuring is complete.
The REIT also expects to amend the share repurchase program to provide additional liquidity to stockholders, and amend the investment guidelines to target additional classes of real estate assets.
The board authorized a tender offer for all of the shares issued and outstanding after it suspends the share repurchase program on May 21st. The date of the planned tender offer has yet to be announced.
Resource Innovation Office REIT focuses on investing in office properties that are located in U.S. cities that attract a young, creative and educated labor pool. Examples include the San Francisco Bay Area, Boston, Washington, D.C., Austin, Seattle and Denver.
According to Summit Investment Research, the company broke escrow with a $2.1 million of equity investment from its sponsor’s parent company in the first quarter of 2016 and has raised $3.9 million equity as of the fourth quarter of 2016. The REIT’s portfolio is comprised of one mixed-use property in Chicago that it purchased for approximately $7.3 million.
