Blog / Triple Net Property

This section features past triple net investment offering recommendations we've made.


American Realty Capital Healthcare Trust

[This offering is fully subscribed. This is provided as an example of one of the offerings our affiliates have recommended to clients in the past.]

Description:

American Realty Capital Healthcare Trust was a non-traded REIT focused solely on the acquisition, management, and strategic disposition of medical office buildings, hospitals, assisted living facilities, and skilled nursing facilities that are core assets in strong demographic markets. Throughout 2013 the REIT paid a 6.8% annualized cash flow on a monthly basis, which was entirely tax-deferred due to depreciation. The credit quality of the portfolio, coupled with longer-term leases, provided investors with significant downside protection and a reliable income.


Goals:

  1. Consistent longer-term income backed by strong corporate and investment grade credit
  2. Acquisition of diverse healthcare properties below their replacement costs with potential for appreciation
  3. Significant tax-savings from tax deferral of 100% of the income based on accelerated depreciation allowances
  4. Potential liquidity event on three-to-five-year horizon, earning a premium for REIT shareholders by listing the REIT on a public market


Status:

On April 7th, 2014 American Realty Capital Healthcare Trust listed on the NASDAQ under the ticker HCT, providing clients with full liquidity. Investors continue to receive a 6.8% dividend on their original share price. HCT has a tender offer on the table at $11 per share to buy shares back, providing investors with a second liquidity option. However current market comps and other other metrics suggest shares may appreciate in value to approximately $12--15.


Cash Flow Return:

Year2013
Projected6.80%
Actual6.80%
Variance0.00%


[Past performance does not guarantee future results. This offering’s results are not necessarily indicative of future recommended offerings. Real Estate Investing is subject to risk, including, but not limited to potential disruptions in cash flow, loss of principal, illiquidity, etc.]

 

Written By: Staff




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