UPFRONT: NEWS
APARTMENT FINANCE TODAY • JANUARY 2008
New REIT
Raising Up
to $2 Billion
Hotelier Glade M. Knight has
launched an effort to raise up to $2
billion in equity for a new real estate
investment trust (REIT) that would
invest in the apartment and hotel
sectors.
The new endeavor, Apple REIT
Nine, Inc., generally would leverage
its investments by about 50 percent.
Properties purchased by the new
REIT will be leased to a management
subsidiary of Apple Suites
Realty Group, based in Richmond,
Va.
Knight plans to raise equity by
selling REIT shares at $10.50 to $11
apiece to individual investors. The
proceeds would be invested primarily
in apartment complexes, as well
as full- and select-service hotels.
The REIT’s shares are publicly
registered, but they will not be publicly
traded on any exchange.
Knight was the founder of
Cornerstone Realty Income Trust, a
public multifamily REIT that was
sold in 2004 to Colonial Properties
Trust in a $1.5 billion deal. Since
1999, Knight has raised about $3.6
billion of equity for several ventures
that invest in the apartment and
hotel sectors.
His latest effort aims to pay
monthly dividends to investors and
expects to hold its investments for
seven years. After that time, the
REIT will list its shares on a major
exchange, sell all holdings, or sell
the company.
Three other Apple vehicles are
still investing capital or have yet to
complete their offerings.
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