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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2018
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
The Company evaluates subsequent events up until the date the consolidated financial statements are issued.
Probable Real Estate Acquisition
Eight & Nine Corporate Centre
On April 11, 2018, the Company, through an indirect wholly owned subsidiary, entered into a purchase and sale agreement to purchase an office property consisting of two buildings containing an aggregate of 311,864 rentable square feet located on an aggregate of 27.6 acres of land in Franklin, Tennessee (“Eight & Nine Corporate Centre”). The seller is not affiliated with the Company or the Advisor. The contractual purchase price of Eight & Nine Corporate Centre is $73.0 million plus closing costs. Pursuant to the purchase and sale agreement, the Company would be obligated to purchase the property only after satisfactory completion of agreed upon closing conditions.  There can be no assurance that the Company will complete the acquisition. In some circumstances, if the Company fails to complete the acquisition, it may forfeit up to $7.0 million of earnest money.
Eight & Nine Corporate Centre was built in 2007 and as of May 1, 2018 was approximately 82% leased to 15 tenants.
Self-Tender Offer
On April 23, 2018, the Company commenced the Self-Tender for up to 8,234,217 shares at a price of $10.93 per share, or approximately $90 million of shares. Unless extended or withdrawn, the Self-Tender will expire at midnight Eastern Time on or about Friday, May 18, 2018.
The Company is conducting the Self-Tender in order to make liquidity available to stockholders in excess of that permitted under its share redemption program (the “SRP”), which recently has been limited to $3 million per quarter for ordinary redemptions. In connection with its approval of the Self-Tender, the Company’s board of directors approved the reopening of the SRP for the June 2018 redemption period. Because of the Self-Tender, the SRP has been suspended since the March 2018 redemption period and will not reopen until the June 2018 redemption period, meaning no redemptions have been or will be made in March, April or May 2018 (including those requested following a stockholder’s death, qualifying disability or determination of incompetence). The Company has cancelled all outstanding redemption requests under the SRP and is not accepting any redemption requests under the SRP during the term of the Self-Tender.
The Self-Tender price of $10.93 per share is 95% of the Company’s most recent estimated value per share and will be paid in cash, less any applicable withholding taxes and without interest, as further described in the offer to purchase and letter of transmittal filed with the SEC. The full details of the Self-Tender, including complete instructions on how to tender shares, is included in the offer to purchase, the letter of transmittal and other related materials, which the Company has made available to stockholders and filed with the SEC upon commencement of the Self-Tender.
If stockholders would like to submit a redemption request under the SRP, they may do so after the Self-Tender expires. Because the SRP has been suspended through May 31, 2018, redemptions under the SRP are expected to resume on the last business day of June.