Royal Oak Profile
Royal Oak Realty Trust Inc. is a private, non-traded REIT formed with its subsidiary, Royal Oak Realty Trust LLC, in 2013 and 2014 under the names Buckingham Net Leased Properties Group Inc. and Buckingham Net Leased Properties Group LLC, respectively (interchangeably referred to as "Royal Oak"). The names were changed to Royal Oak in December 2015. Royal Oak seeks to acquire, own and operate commercial net leased real estate as a Real Estate Investment Trust, or REIT, for federal income tax purposes. REIT status was elected for the year ended December 31, 2014 and it is Royal Oak's intent to operate the Company to continue to qualify as a REIT. The Company focuses on mission-critical, office and industrial properties net leased to credit-worthy tenants under long-term lease contracts. The net cash flows remaining after payment of all the Company's obligations are used to fund dividend payments to shareholders, as declared by the Board of Directors. Royal Oak's shareholders must meet the requirements of the Securities and Exchange Commission for Accredited Investors. Royal Oak's current portfolio is comprised of twenty property acquisitions totaling 29 buildings located in eleven states. Our current portfolio totals approximately $132 million of gross asset value and 2.7 million square feet.
The Asset Manager for Royal Oak is Cambridge Street Asset Management LLC, and the Property Manager is Cambridge Street Property Management LLC. Both management companies are majority owned by our Sponsor, Daniel J. Goldstein, who serves as President and CEO of the Company. The Asset Manager identifies and arranges for the purchase of all properties, qualifies tenants, and seeks the equity capital and debt financing the Company requires to operate, in addition to other services fully detailed in the Asset Management Agreement. The Property Manager is responsible for the collection of rent, management of the insurance program, monitoring tenant compliance with the lease obligations, and other services as detailed in the Property Management Agreements.
Royal Oak is governed by a Board of Directors compromised of five directors; three are independently elected by the shareholders, and two are nominated by the Asset Manager. The three Independent Directors form a sub-set committee of the Board, the Independent Directors Committee. This committee provides independent oversight of the Asset Manager, has the final review and approval of all proposed acquisitions not in compliance with the Property Selection Criteria and ensures proper disclosure of potential conflicting interests the Company may have with its managers. In addition, the Independent Directors Committee establishes the price of the Royal Oak common shares (the Determined Share Value) quarterly or more frequently, as required.
The Asset Manager utilizes a committee process (the Asset Acquisition Committee) to review and approve potential acquisitions of new properties. The Asset Acquisition Committee is comprised of Daniel J. Goldstein, plus two independent shareholders of the Company. As referenced previously, any proposed acquisition not in compliance with the Property Selection Criteria, or that is greater than $10 million, must also be approved by the Independent Directors Committee.