CLASS B SHARES
Class B shares are designed to appeal to investors seeking tax shelter and growth, while at the same time realizing moderate investment income. These shares generate large "passive activity losses" while typically paying a preferred return of 6%. In addition, investors in Class B shares are entitled to 50% of any additional cash available for distribution. Class B investors are also allocated all of the depreciation expense, making their earnings more than tax free.
Class B Shares are long-term investments, typically lasting up to 10 years. mRA forcasts the current investors in Class B Shares will receive annual income distributions averaging 6.5% and after tax internal rates of return of about 12% over the life of the investments.