Franklin Select Realty Trust: This Real Estate Investment Trust company had a very diversified portfolio, investing in commercial, industrial and residential properties, The company Franklin Select Realty Trust was known as Franklin Select Real Estate Income Fund until it changed its name years later when it entered the REIT market. This company was founded in 1987 in Southern California, and it soon grew to be a multimillion dollar company.
Franklin Select Realty Trust was based in San Francisco California, meaning that most of the company’s assets were also based in California. Any Real Estate Investment Trust company is not subject to income taxes for the majority of the income they make in a year, since the profits from this part of the income go straight to each shareholder, at the end of every fiscal quarter making a REIT a good choice if you don’t want to pay heavy income taxes on your investment.
In 1997 Franklin Select Realty Trust and Franklin Holdings (its parent company) was worth an estimated $190 billion dollars in real estate assets and properties under management, making it a huge asset to any company’s portfolio.
Back in the year 2000 Franklin Select Realty Trusts’ plan was to liquidate all assets and dissolve the company. As of today Franklin Select Realty Trust has a number of class action suits against them regarding the way they ran their business and the privacy policy of California, these lawsuits are still unsettled and under investigation.
Franklin Select Realty Trust shareholders were paid out on Jan 15 2000, and the business was closed. The total price paid for all Franklin Select Realty Trust assets was $131.5 million dollars; these properties totalled 20 businesses and buildings in 2000, most properties were based in the west coast.
Franklin Select Realty Trust is now fully liquidated and dissolved, creating another real estate investment trust that has been sold off and liquidated, although its parent company Franklin Multi Income Fund is still in business as of 2010.
Franklin Select Realty Trust found out the hard way that the real estate investment trust business is a hard one to be in, there is quite a lot of red tape and privacy issues as well as market ups and downs that create a risky investment for shareholders and investors, In the 1980’s and the 1990’s there was no better business to be in, the returns were good and the market was secure. Since 2000 the business has been slowly slipping and many companies, such as Franklin Select Realty Trust have gone into liquidation.
| Tags: business, California, company, estate, Franklin Select, income, investment, market, portfolio, Real, Realty, San Francisco, Southern California, Trust | ||
| Posted in Investing, Real Estate, Strategies |
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