Press release from CNW Group
Pure Multi-Family REIT LP announces closing of previously announced property for US$16.5 million
Monday, July 22, 2013
Pure Multi-Family REIT LP announces closing of previously announced property for US$16.5 million18:00 EDT Monday, July 22, 2013
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
VANCOUVER, July 22, 2013 /CNW/ - Pure Multi-Family REIT LP ("Pure Multi") (TSXV: RUF.U) announced today the successful closing of Windsong Apartment Homes ("Windsong") a multi-family apartment community located in Dallas, Texas, for a purchase price of US$16,500,000. Windsong was acquired at a going-in capitalization rate of 6.89%.
Windsong consists of 264 residential units and 172,172 square feet of net leasable area, located in 18 two and three-story buildings on a 10 acre site. Windsong is located inside the new President George Bush Turnpike and just west of the Dallas North Tollway. The property is conveniently located near several major employment centres and is an easy commute to Downtown Dallas. Windsong is also in close proximity to prestigious shopping including the Shops of Willow Bend, Stonebriar Mall and The Galleria. Originally constructed in 1986, Windsong offers residents a great, convenient location and a variety of floor plans.
The property has recently undergone several improvements including an office renovation, swimming pool and tennis court resurfacing, the opening of a 24-hour access gym, the addition of an outdoor kitchen adjacent to the swimming pool and a complete repainting of its exterior.
Pure Multi funded the acquisition of Windsong with equity from the bought deal offering that closed on May 8, 2013 and with partial proceeds from a new three year US$9,900,000 Revolving Credit Facility (the "Facility") with Capital One Bank. The Facility provides for interest-only payments during the term at a borrowing rate of LIBOR (London Interbank Offer Rate) plus 200 basis points. The Facility provides Pure Multi with attractive financing and financial flexibility to execute its growth strategies going forward.
Stephen Evans, CEO, said "We are pleased to be adding Windsong to our portfolio. This property has performed well due to its exceptional location and proximity to transportation hubs and the Legacy Business Park, a nationally acclaimed, 2,665-acre master planned development that boasts high-profile organizations such as EDS, the Frito-lay Company, JCPenney, Cadbury Schweppes Americas Beverages, Ericsson and McAfee."
The property was acquired indirectly by Pure Multi from a wholly-owned subsidiary of Sunstone U.S. Opportunity Realty Trust ("Sunstone"). Pure Multi and Sunstone are non-arm's length parties in accordance with the policies of the TSX Venture Exchange ("TSXV") by virtue of having certain directors and officers in common.
Pure Multi 's 2013 year-to-date acquisitions are summarized below:
|Fairways at Prestonwood||North Dallas, TX||$||17,500,000||6.40%||156||152,072|
|Vistas at Hackberry Creek||Irving, TX||$||45,400,000||6.49%||560||435,208|
|Boulevard at Deer Park||Deer Park, TX||$||23,000,000||6.07%||216||201,804|
|Windsong Apartment Homes||Dallas, TX||$||16,500,000||6.89%||264||172,172|
As a result of the Windsong acquisition, Pure Multi 's portfolio now totals 10 multifamily properties situated on 172 acres of land, with 3,104 apartment units in 219 buildings consisting of approximately 2.66 million rentable square feet.
About Pure Multi-Family REIT LP
Pure Multi is a Canadian based, publically traded vehicle which offers investors exclusive exposure to U.S. multi-family real estate assets. Pure Multi's Units are USD denominated and allow Canadian investors the opportunity to buy into under-valued American hard assets while the Canadian dollar trades near 40 year highs. Additional information about Pure Multi is available at www.puremultifamily.com or www.sedar.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (as that term is defined in the policies of the TSX Venture Exchange) HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
SOURCE Pure Multi-Family REIT LP
Image with caption: "Pool view and outdoor grill view at Windsong Apartment Homes (CNW Group/Pure Multi-Family REIT LP)". Image available at: http://photos.newswire.ca/images/download/20130722_C9020_PHOTO_EN_29193.jpg
For further information:
Director of Investor Relations
Pure Multi-Family REIT LP
Suite 910, 925 West Georgia Street
Vancouver, BC V6C 3L2
Phone: (604) 681-5959 or (888) 681-5959