KBS Legacy REIT to Liquidate
The board of KBS Legacy Partners Apartment REIT Inc., a publicly registered non-traded real estate investment trust, has unanimously approved to liquidate and dissolve the company, according to a filing with the Securities and Exchange Commission.
The plan of liquidation, which must still be approved by shareholders, would allow the company to sell all of its remaining properties, pay all of its known liabilities, distribute its remaining cash to its stockholders, and wind up operations.
All 10 properties in the REIT’s portfolio are currently under contract for sale, however, shareholders must approve the liquidation plan in order to sell four of its multifamily properties for $218.9 million, as a condition of the sales contracts.
The four properties that will not be sold without approval are Legacy at Valley Ranch in Irving, Texas; The Residence at Waterstone in Pikesville, Maryland; Crystal Park at Waterford in Frederick, Maryland; and Lofts at the Highlands in St. Louis, Missouri. The approval deadline is January 18, 2018, which can be extended in certain circumstances.
If stockholders do not approve the plan, the REIT intends to sell its remaining portfolio while pursuing a longer-term business plan for the four properties.
If the plan is successfully implemented, stockholders are expected to receive between approximately $8.27 and $8.70 per share for each share owned. In May 2017, the REIT paid a special distribution of $1.00 per share to stockholders for the sale of Wesley Village, which is not included in the estimated range of liquidating distributions. Shares were originally sold for $10.00 each.
Shareholders will vote on the liquidation plan at the yet-to-be scheduled annual meeting of shareholders. If shareholders approve, the liquidation plan is expected to be completed within 12 months.
KBS Legacy Partners Apartment REIT commenced its initial offering in March 2010 and terminated in March 2014 after raising approximately $216 million. The company’s portfolio is comprised of 10 multifamily properties valued at approximately $410 million.