Resource Real Estate Opportunity REIT (“Resource REIT”), Resource Real Estate Opportunity REIT II (“Resource REIT II”) or Resource Real Estate Opportunity REIT III (“Resource REIT III”) recently completed previously-announced stock-for-stock merger transactions. The three affiliated non-traded real estate investment trusts merged in early 2021, combining to form a $3 billion self-managed REIT named Resource REIT Inc. In the merger transaction, the surviving entity Resource REIT II acquired Resource REIT I and Resource REIT III in separate stock-for-stock transactions. The REITs also acquired their external advisors in a series of transactions and are now internally managed.
Resource REIT launched in June 2010 and raised $645.8 million in investor equity prior to closing in December 2013. Resource REIT II’s primary offering launched in February 2014, closed in February 2016 and raised roughly $645 million in investor equity. Resource REIT III’s offering was declared effective in April 2016 and raised roughly $111.4 million in investor equity. The offering closed in October 2019.
Prior to the merger, Resource REIT and Resource REIT II shares reportedly changed hands in private transactions at significantly lower prices than their reported NAVs (net asset values). Resource REIT shares are listed at an estimated NAV of $11.10 a share, but reportedly changed hands for between $6.50 and $6.66 a share. Resource REIT II shares, with a reported NAV of $9.08 a share, reportedly changed hands for between $4.50 and $5.00 a share.