An investor who invested in Ark7 shares may request the redemption of his, her, or its interests in a series up to 24 months after acquiring the interests, subject to the requirements and limitations as set forth in section 7.5 of the operating agreement.
In summary, investors have two options:
- Within 12 months following the date you acquired the shares, the redemption price will be equal to 95% of the purchase price reduced by the aggregate sum of distributions already paid.
- Within the second 12 months following the date you acquired the shares, the redemption price will be equal to 100% of the purchase price with respect to the paid distributions.
How do I execute redemption?
Once you decide the right time to execute the redemption program, contact support@ark7.com to initiate the redemption process. We will verify your identity for safety reasons.
How long does it take to execute redemption?
When the holding company, Ark7 Properties LLC, has sufficient cash to buy out your shares, it takes about 5 to 7 business days for the execution. If the company doesn’t have sufficient funds, your request will be queued to execute and redemption has the highest priority of the holding company’s cash distributions.
Will I still receive the distributions before redemption is executed?
Yes. You will still receive the distributions until the redemption transaction is executed.
Note: Redemption has certain limitations, for example, the holding company’s cash flow. It is also only available for certain properties. Read the operating agreement for more details.