CIM Commercial Trust Corporation

Active Offering Industry: Real Estate (REIT)

Minimum investment: $10,000

Sector: Urban Office

Offering Type: Prospectus

Offering Amount (Max): $900,000.000

Offering Amount (Min.): $250,000

Offering Price: $25,000 per unit

Targeted Annual Yield: *5.5% (paid quarterly)

  • There is no public market for the Series A Preferred Stock or Warrants and CMCT does not expect one to develop.
  • The Series A Preferred Stock is subordinate to all of CMCT’s existing and future debt and liabilities and those of CMCT’s subsidiaries. The terms of CMCT’s Preferred Stock do not contain any financial covenants and do not restrict how CMCT can use the proceeds of the offering. CMCT’s future debt may include restrictions on our ability to pay dividends to preferred stockholders or make redemptions in the event of a default under the debt facilities or under other circumstances.
  • Shares of Series A Preferred Stock may be redeemed for shares of Common Stock, which ranks junior to the Series A Preferred Stock with respect to dividends and upon liquidation.
  • The cash distributions holders of Series A Preferred Stock may receive may be less frequent or lower in amount than described herein.
  • Holders of CMCT securities will be subject to inflation risk.
  • The exercise price for the Warrants will be established based on CMCT’s estimated net asset value (“NAV”) per share as published at issuance, which value may not be indicative of the price at which the shares of CMCT’s Common Stock for which the Warrants may be exercised would trade.
  • CMCT’s operating performance is subject to risks associated with the real estate industry. A significant portion of CMCT’s properties, by aggregate net operating income and square feet, are located in California and the District of Columbia. CMCT is dependent on the California and the District of Columbia real estate markets and economies, and are therefore susceptible to risks of events in those markets that could adversely affect its business.

INVESTOR MATERIALS

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OVERVIEW

CIM Commercial Trust Corporation (NASDAQ: CMCT) is a real estate investment trust (REIT) that principally invests, owns, and operates stabilized Class A and creative office investments located in locations we believe are vibrant and improving urban communities throughout the U.S. Properties are primarily located in Los Angeles, the San Francisco Bay Area and Washington, D.C.

CIM Group, the manager of CIM Commercial Trust, is comprised of a seasoned team of real estate investment professionals with extensive expertise in acquisitions, investments, development, finance, leasing, asset management as well as in-house research capabilities. CMCT is managed by CIM Group, an urban real estate and infrastructure fund manager with approximately $19.2 billion in assets under management and 560+ employees.  CIM has a seasoned team of real estate and investment professionals with extensive expertise in such areas as research, acquisition, investment, development, finance, leasing, and asset management.  CMCT benefits from more than 20 years of CIM’s history of investing in urban markets, its comprehensive operating experience as well as its access to investment opportunities in a diverse range of stabilized urban properties.

CMCT is offering up to $900 million of Series A Preferred Stock and warrants (Units) to purchase our common stock. Holders of Series A Preferred Stock are entitled to receive, when, and as authorized by our board of directors, cumulative cash dividends on each share of Series A Preferred Stock at an annual rate of *5.5%.  All commissions, fees and expenses relating to the offering will be paid by CMCT.

If an investor purchases through a fee based account, CMCT will sell the Units at a 5% discount, resulting in a 5.8% annual yield and a targeted annual total return of 6.9% (excluding the warrants).1

1 The current yield of 5.8% is based on the annualized dividend of $1.375 per Preferred Share (payable quarterly) divided by the Offering Price of $23.75. The targeted annual return is based on a five year hold and includes dividends, an Offering Price of $23.75 per Preferred Share and redemption at Stated Value of $25.00 per Preferred Share.

An investment in the securities described herein involves risks and other considerations, including the ones described below. Before you invest, you should read the prospectus and other documents that CIM Commercial Trust Corporation (“CMCT” or “CIM Commercial Trust”) filed with the Securities and Exchange Commission (“SEC”) for more complete information about CMCT and the risks and other considerations relating to the securities described herein. Any terms of securities described herein represent a general overview of certain selected terms and are qualified in their entirety by reference to the prospectus and other documents that CIM Commercial Trust filed with the SEC.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS.

LEGAL NOTICE THE OFFERING STATEMENT FOR THIS OFFERING HAS NOT YET BEEN QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION UNLESS OTHERWISE INDICATED ABOVE. ACCORDINGLY, NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT, WILL NOT BE ACCEPTED. NO SALES WILL BE MADE OR COMMITMENTS TO PURCHASE ACCEPTED UNTIL THE OFFERING STATEMENT RELATING TO THIS OFFERING HAS BEEN QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION. A PROSPECTIVE PURCHASER’S INDICATION OF INTEREST IS NON-BINDING.