UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): September 15, 2010

Cole Credit Property Trust III, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland (State or other jurisdiction of incorporation or organization)		000-53960 (Commission File Number)		26-1846406 (I.R.S. Employer Identification No.)

2555 East Camelback Road, Suite 400, Phoenix, Arizona 85016

(Address of principal executive offices)

(Zip Code)

(602) 778-8700

(Registrant’s telephone number, including area code)

None

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 8.01		Other Events

This Current Report on Form 8-K is being filed by Cole Credit Property Trust III, Inc. (which may be referred to as the “Registrant,” the “Company,” “we,” “our,” and “us”) to present information about the prior performance of programs sponsored by Cole Real Estate Investments, the Company’s sponsor. This prior performance information is being filed on Form 8-K in order to be incorporated by reference into the Company’s Registration Statement on Form S-11 (File No. 333-164884), as amended.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: September 15, 2010		COLE CREDIT PROPERTY TRUST III, INC.
		By:		/s/ D. Kirk McAllaster, Jr.
		Name:		D. Kirk McAllaster, Jr.
		Title:		Executive Vice President, Chief Financial Officer, Treasurer and Secretary

 

The prior performance tables that follow present certain information regarding the real estate programs previously sponsored by related entities. The Company has presented all prior programs that have similar investment objectives to this offering. In determining which prior programs have similar investment objectives as this offering, the Company considered factors such as the type of real estate acquired by the program, the extent to which the program was designed to provide current income through the payment of cash distributions or to protect and preserve capital contributions, and the extent to which the program seeks to increase the value of the investments made in the program. Six related partnerships formed from January 1, 2000 to December 31, 2009 have or had similar investment objectives to ours and purchased an aggregate of three retail centers, with an aggregate of approximately 815,000 rentable square feet, one data center building with an aggregate of approximately 135,000 rentable square feet, one single-tenant commercial property with an aggregate of approximately 33,000 square feet and 22 single-tenant retail properties with an aggregate of approximately 509,000 rentable square feet. One partnership purchased two land parcels for development with an aggregate of approximately 452,000 square feet. The prior performance tables also include the activity of CCPT I, CCPT II, Cole Collateralized Senior Notes, LLC, Cole Collateralized Senior Notes II, LLC, Cole Collateralized Senior Notes III, LLC, Cole Collateralized Senior Notes IV and the various offerings related to Cole Capital Partners’ Tenants-in-Common and Delaware Statutory Trust (DST) programs.

 

As of December 31, 2009, CCPT I had raised approximately $100.3 million and had acquired 42 single-tenant commercial properties, with an aggregate of approximately 1.0 million square feet. We consider CCPT I to have investment objectives similar to this offering, as CCPT I’s objectives were to provide income to investors through the payment of cash dividends, to preserve and return investor capital contributions, and to realize growth in the value of properties upon their ultimate sale.

 

As of December 31, 2009, CCPT II had raised approximately $2.1 billion from 41,459 investors and had acquired 397 single-tenant retail properties, 275 single-tenant commercial properties, and 21 multi-tenant retail properties in 45 states and the U.S. Virgin Islands, for an aggregate acquisition cost of approximately $3.1 billion. CCPT II also acquired an indirect interest in one multi-tenant retail property through a joint venture, for approximately $53.7 million. CCPT II also acquired an indirect interest in a ten-property storage portfolio through a joint venture, for approximately $70.7 million. We consider CCPT II to have investment objectives similar to this offering, as CCPT II’s objectives were to provide income to investors through the payment of cash dividends, to preserve and return investor capital contributions, and to realize growth in the value of properties upon their ultimate sale.

 

As of December 31, 2009, affiliates of our advisor had issued an aggregate of approximately $114.2 million in collateralized senior notes through four debt offerings and had acquired an aggregate of 123 single-tenant retail properties, 39 single-tenant commercial properties and three multi-tenant retail properties in 37 states for an aggregate acquisition cost of approximately $1.0 billion. As of December 31, 2009, 161 of the properties had been sold, of which 26 were sold as part of Cole Capital Partners’ tenant-in-common program, 52 were sold as part of Cole Capital Partners’ Delaware Statutory Trust Program, eight were sold to CCPT I, 17 were sold to CCPT II and six were sold to CCPT III. On April 28, 2006, an affiliate of our advisor redeemed at par all of the approximately $28.0 million in collateralized senior notes issued under the first debt offering. On April 6, 2009, an affiliate of our advisor redeemed at par all of the approximately $28.8 million in collateralized senior notes issued under the second debt offering. We consider the debt offerings to have investment objectives similar to this offering, as each of the debt offerings was organized to raise capital for investment in real estate, and Cole Real Estate Investments acted as a fiduciary for the investors in each program with a goal of delivering a stated return to such investors.

 

In addition, Cole Real Estate Investments offered properties to Section 1031 exchange investors in the form of the sale of tenant-in-common ownership interests in such properties. As of December 31, 2009, aggregate ownership interests of $171.4 million had been sold in 26 private offerings of properties located in 15 states. In addition, Cole Real Estate Investments offered properties through the DST Program whereby beneficial interests

 

 

Past performance is not necessarily indicative of future results.

were offered in trusts that acquire real property. As of December 31, 2009, aggregate ownership interests of approximately $176.1 had been sold in 27 private offerings of properties located in 21 states.

 

Cole Partnerships, Inc., an entity affiliated with the officers of Cole Capital Advisors, has raised $5 million in a debt offering for general corporate purposes, including investments in joint ventures with affiliates, which has been repaid. This program is not considered to have similar investment objectives to this offering.

 

The investment objectives of previous private real estate programs formed from 1979 through 1992 are not similar to the investment objectives of the above programs due to the fact that those properties have been held for capital appreciation in the value of the underlying property.

 

These tables contain information that may aid a potential investor in evaluating the program presented. However, the information contained in these tables does not relate to the properties held or to be held by us, and the purchase of shares will not create any ownership interest in the programs included in these tables.

 

These tables are presented on a tax basis rather than on a GAAP basis except where noted. Tax basis accounting does not take certain income or expense accruals into consideration at the end of each fiscal year. Income may be understated in the tables, as GAAP accounting would require certain amortization or leveling of rental revenue, the amount of which is undetermined at this time. Expenses may be understated by monthly operating expenses, which typically are paid in arrears.

 

 

Past performance is not necessarily indicative of future results.

TABLE I

 

EXPERIENCE IN RAISING AND INVESTING FUNDS (UNAUDITED)

 

This table provides a summary of the experience of the sponsors of Prior Real Estate Programs for which offerings have been closed since January 1, 2007. Information is provided with regard to the manner in which the proceeds of the offerings have been applied. Also set forth below is information pertaining to the timing and length of these offerings and the time period over which the proceeds have been invested in the properties. All figures are as of December 31, 2009.

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE I

 

EXPERIENCE IN RAISING AND INVESTING FUNDS (UNAUDITED) — (Continued)

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE I

 

EXPERIENCE IN RAISING AND INVESTING FUNDS (UNAUDITED) — (Continued)

 

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE II

 

COMPENSATION TO SPONSOR AND AFFILIATES (UNAUDITED)

 

This table sets forth the compensation paid to the sponsor and its affiliates, including compensation paid out of the offering proceeds and compensation paid in connection with the ongoing operations of Prior Real Estate Programs. Prior Real Estate programs whose offerings have closed since January 1, 2007 are shown separately and all other programs have been aggregated. Each of the Prior Real Estate Programs for which information is presented below has similar or identical investment objectives to this program. All amounts are as of December 31, 2009.

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE II

 

COMPENSATION TO SPONSOR AND AFFILIATES (UNAUDITED) — (Continued)

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE II

 

COMPENSATION TO SPONSOR AND AFFILIATES (UNAUDITED) — (Continued)

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE II

 

COMPENSATION TO SPONSOR AND AFFILIATES (UNAUDITED) — (Continued)

 

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE III

 

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED)

 

The following sets forth the unaudited operating results of Prior Real Estate Programs sponsored by the sponsor of this program, the offerings of which have been closed since January 1, 2005. The information relates only to programs with investment objectives similar to this program. All amounts are as of December 31 of the year indicated, expect as noted.

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE III

 

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE III

 

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE III

 

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)

 

 

 

 

Past performance is not necessarily indicative of future results.

 

TABLE III

 

ANNUAL OPERATING RESULTS OF PRIOR REAL ESTATE PROGRAMS (UNAUDITED) — (Continued)