Cole Office & Industrial REIT (CCIT III), Inc. ("CCIT III")
Cole Office & Industrial REIT (CCIT III), Inc. ("CCIT III")
CCIT III is a non-listed REIT that invests primarily in single-tenant, mission-critical office and industrial properties that are essential to the day-to-day operations of a company. CCIT III’s simple objective is to collect rent from industry-leading corporations across America and provide a stream of income to our investors.1 CCIT III’s investment strategy is focused on necessity properties that are essential to the daily operations of a corporation’s business, such as headquarters, distribution centers and other mission-critical operations.
The Office and Industrial Advantage
For more than a decade, Cole Capital has offered office and industrial real estate in its REIT programs. We acquire and manage net-lease, single-tenant corporate properties that have the potential to offer a more stable income stream1 than traditional properties with multiple tenants.
Cole Capital’s Office & Industrial Investment Strategy
The investment strategy for Cole Capital is focused on acquiring necessity properties that are essential to the daily operations of a corporation’s business, such as:
» Corporate or regional headquarters
» Mission-critical operating facility
» Regional distribution center
» Warehouse strategically located near major shipping and freight transport facilities
In addition, Cole Capital carefully considers the following criteria: property characteristics, creditworthy tenants, lease term and location.
Case Study: Regional Distribution Facility
CCIT III acquired a single-tenant office building leased to Siemens, the world’s largest producers of energy-efficient, resource-saving technologies and the leading supplier of power generation, transmission and medical diagnosis systems. The property is located in a suburb with an established and diverse corporate environment consisting of many blue-chip employers.
Interstate 275 and State Route 50 are easily accessible from the property, providing access to the Greater Cincinnati area. Cincinnati/Northern Kentucky International Airport is located 30 minutes from the property.
Founded in 1847, Siemens is now present in more than 200 countries with over 340,000 employees and 289 production plants worldwide. The property serves as the primary office location for the company’s Product Lifecycle Management software business, and houses Siemens’ Cyber Defense Center and a data center.
The infrastructual and technological capabilities located at this property are mission-critical to the tenant’s operations, which could make it challenging for the tenant to relocate or replicate the facility elsewhere.
|CCIT III Offering Summary||Class A Shares||Class T Shares|
|Price to Public (POP)||$10.00 per share||$9.57 per share|
|Net Offering Price||$9.00 per share||$9.00 per share|
|Distribution Reinvestment Program (DRIP)||$9.10 per share||$9.10 per share|
|Initial Minimum Investment||$2,500||$2,500|
Suitability Requirements: A net worth of at least $250,000 or a gross annual income of at least $70,000 and a net worth of at least $70,000. The following states have additional suitability requirements: AL, CA, IA, KS, KY, MA, ME, MI, MO, NE, ND, NJ, NM, OH, OR, PA, TN and VT. Please consult the prospectus for additional information.
Not currently available for MA residents.
CCIT III distributions are calculated as a dollar value payable on a per share basis, which is set by the Board of Directors and reviewed quarterly.
1) There is no guarantee that investors will receive a distribution, and distributions paid may be derived from proceeds from the offering, from borrowings or from the sale of assets. Fees and expenses associated with the management of the REIT will impact the ability to pay distributions and the effects of any capital appreciation. There is no guarantee that the shares of the REIT and the underlying properties will appreciate in value.
2) Double-Net Lease (NN): Requires the tenant to pay base rent, taxes, maintenance, insurance and utilities. Triple-Net Lease (NNN): Requires the tenant to pay for base rent, net real estate taxes on the leased asset, net building insurance and net common area maintenance.
Consider These Risk Factors Before Investing
The offering is being made by means of a prospectus only to qualified investors who meet minimum suitability requirements, as well as suitability standards as determined by your financial advisor. This material must be preceded or accompanied by the Cole Office & Industrial REIT (CCIT III), Inc. ("CCIT III") prospectus. Please read the prospectus in its entirety before investing and learn more about the risks associated with this offering, including, but not limited to:
- An investment in CCIT III involves a high degree of risk. Investors should purchase shares of its common stock only if they can afford a complete loss of their investment.
- CCIT III is a “blind pool,” as it has no operating history and has not identified any of the properties it intends to purchase. There can be no guarantee that it will meet its investment objectives.
- This investment has limited liquidity. No public market exists for CCIT III, and one may never exist, for the shares of its common stock. There is also the possibility that even if investors were able to sell their shares, they may have to sell them at a substantial discount. Investors should have an expected investment time horizon in excess of seven years, if at all.
- CCIT III is not obligated, through its charter or otherwise, to effect a liquidity event, and it may not effect a liquidity event at all. If CCIT III does not effect a liquidity event, investors may have to hold their investment in shares of CCIT III’s common stock for an indefinite period of time.
- There is no guarantee that investors will receive a distribution. Distributions may be paid from the proceeds of the offering, from borrowings, or from the sale of assets, and there is no limit on the amounts that may be paid from such other sources. Payments of distributions from sources other than cash flow from operations reduce the amount of capital available for real estate investments and may decrease or diminish an investor’s interest.
- There are conflicts of interest between CCIT III and CCIT III’s advisor and its affiliates, including payment by CCIT III of significant fees to the advisor and its affiliates.
- Economic factors may adversely affect the commercial real estate markets, including: changes in the economy, tenant turnover, interest rates, availability of mortgage funds, operating expenses, cost of insurance and each tenant’s ability to continue to pay rent.
- The share price of CCIT III is not intended to reflect the net asset value of CCIT III until such time as the assets are valued by its board of directors.
- If CCIT III fails to qualify as a REIT, it will be subject to federal income tax. Cash available for distributions could decrease materially and adversely affect the return on your investment.
- Leverage (debt) is borrowed money. It is often used to supplement or enhance the total return on an investment. However, it is also recognized that leverage, when used excessively, can have a significant negative impact on the performance of an investment. Leverage risks may include an inability to pay the interest from the cash flow from the property, rates that can adjust to higher levels, and the potential for default on loans. In an effort to maximize the performance of a REIT portfolio, a number of factors are considered in evaluating financing options. Some of the more common factors include cost of capital, fixed versus variable debt, loan-to-value and debt coverage ratios. CCIT III intends to use leverage during the offering period, which could limit the amount of cash available to distribute to investors and could result in a decline in the value of an investment in CCIT III.
Cole Capital® is the sponsor of a number of real estate investment programs. Cole Capital is a trade name used to refer to a group of affiliated entities that provide external management services to the real estate investment programs sponsored by Cole Capital.