T REIT Plans Liquidating Trust to Close Books

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SANTA ANA, CA-In anticipation of selling its final asset after disposing of its interest in a Texas property, T REIT intends to enter into a liquidating trust next month to wind up the company’s affairs and liquidate its assets. Jack Maurer, president and CEO of T REIT, tells GlobeSt.com that after selling its interest in an asset called Enclave Parkway in Houston, the company now has only one remaining property, a 10.3% interest in the Congress Center in Chicago.

T REIT, which is advised and managed by TIC sponsor Triple Net Properties, was formed in 1998 to invest in office, retail, industrial and service properties in states that do not have state income taxes. The premise behind investing in these states was that economic growth would be greater there, and that has turned out to be true, Maurer notes.

T REIT is a REIT that is similar in structure to G REIT, another specialty REIT that is advised and managed by Triple Net and is also in the process of liquidating. Both are nontraded REITs, so-called because their shares do not trade publicly but are owned by shareholders who must meet certain qualifications to own the stock.

T REIT owned 100% interest in some of the properties it invested in and partial interests in others, in some cases investing through a TIC structure and in some cases via an LLC. In the Enclave Parkway in Houston, for example, the company owned its interest through an LLC.

In conjunction with the sale of 1401 Enclave Parkway, T REIT’s board of directors approved a special liquidating distribution of approximately $2.6 million to its shareholders, or approximately 56 cents per share of common stock.

Maurer comments that the most significant aspect of the liquidation of T REIT, which expects to conclude its plan of liquidation by Dec. 31, is that shareholders to date have received all of their original investment back, plus distributions during the holding period and distributions yet to come from the sales of the final assets.