Rich Uncles Real Estate Investment Trust I's board of trust managers hired Cushman & Wakefield as a financial adviser to help it evaluate strategic alternatives, including unloading its entire portfolio through either a sale, a merger or another type of transaction.
In a release, the company said it believes now is an "opportune time" to explore a sale of the portfolio, which includes 21 properties, comprised of four office assets, 11 retail properties and six industrial facilities.
A sale of the portfolio, which represents total investments of $140 million as of Sept. 30, 2018, must be approved by the nontraded REIT's shareholders at a meeting that could occur as early as the second quarter. In announcing the strategic review, Rich Uncles REIT said its net asset value per share was $10.57 as of Dec. 31, 2018, compared to a prior NAV of $10.66 per share.
As part of the strategic alternatives review, one independent board member resigned, and the three remaining independent board members, who also serve in the same capacity at RW Holdings NNN REIT Inc., have resigned their positions at the affiliated REIT, thereby eliminating any overlapping board memberships between the two companies.
Rich Uncles REIT I has suspended common stock redemptions under its share repurchase plan as it conducts the strategic review.