In December, Cole Real Estate Investments launched its latest investment offering: the Cole Real Estate Income Strategy (Daily NAV) Inc. What makes this non-listed REIT different from other offerings is the lengths Cole has gone to create greater transparency with Daily NAV. A frequent criticism of non-listed REITs is that they are difficult investments to value and exit, making this type of investment less liquid than other options.
To achieve greater liquidity and transparency, the purchase price for Cole Income NAV Strategy common shares will vary from day to day and, on any given business day, will be equal to the Cole REIT’s net asset value, or NAV, divided by the number of common shares outstanding, as of the end of each day (NAV per share). This value will be determined by entities external to Cole. Additionally, Cole Income NAV Strategy will offer shareholders the opportunity to redeem shares on a daily basis, subject to certain limitations, at the Cole REIT’s NAV per share on that business day. By doing this, Cole believes the REIT will be more attractive to investors, including institutions.
Shares for investors will be made available through registered investment advisors and broker-dealers who charge their clients a fee for their services (typically referred to as wrap accounts or fee-based accounts). Investors will not pay upfront selling commissions for shares.
Read the full article on National Real Estate Investor.