MARIETTA, GA – NexPoint Residential Trust announced the acquisition of a 708-unit apartment community in Marietta, Georgia. On June 30, 2017, NexPoint Residential Trust, through its operating partnership, NexPoint Residential Trust Operating Partnership, bought the property, Rockledge – A Residential Resort, from an unaffiliated third-party for approximately $113.5 million.

Rockledge consists of 708 units situated on 78.1 acres of contiguous land within Atlanta’s second largest Class A Office submarket (Cumberland/Galleria), approximately one mile from the new Atlanta Braves stadium (Sun Trust Park), with direct access to the Chattahoochee River National Recreation Area.

Originally developed in three phases by Post Properties, Rockledge had average monthly rents of $1,153 and 93.6% physical occupancy at acquisition.

The Rockledge acquisition was structured as a reverse 1031 exchange to facilitate the Company’s continued plot to recycle capital in a tax efficient manner from dispositions of its rehabbed assets into well-located, “covered-land” assets with value-add potential in the Company’s core target markets.

The Company funded the buy price with cash on hand, and borrowings of approximately $113.5 million under a bridge facility with KeyBank National Association, and a new first mortgage with the Federal Home Loan Mortgage Corporation, which the Company entered into, through NXRT OP, on June 30, 2017.

Following the completion of the reverse 1031 exchange, management expects the Rockledge loan-to-value ratio to stabilize at approximately 55%.

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol “NXRT,” primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with “value-add” potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States.

Powered by WPeMatico

STONE MOUNTAIN, GA – Napali Capital, a leading strategic real estate investment company, announced the successful acquisition of Mountain Lake Apartments, a 284-unit apartment community in Stone Mountain, Georgia.

The multifamily property is located at 1401 N Hairston Road and consists of 22 two-tale residential buildings on a 23.59-acre site. The community features a mix of 268 one-, two- and three-bedroom apartments with one to two bathrooms, ranging between 880 square feet and 1,305 square feet, and 16 three-bedroom, two-and-a-half bathroom townhomes averaging 1,468 square feet. 

The property is conveniently situated close to major thoroughfares including Stone Mountain Freeway/State Road 410 and Interstate 285. Mountain Lake Apartments is south of East Ponce Leon Avenue and approximately 8 miles from downtown Decatur. The location provides immediate access via I-20 and I-285 to hubs such as North Gwinnett, Perimeter Center and Hartsfield-Jackson International Airport. Mountain Lake Apartments is close to metropolitan Atlanta’s notable employers and attractions, including DeKalb Medical Center Hillandale, Tucker-Stone Mountain Industrial Park, Northlake retail and business district, Smoke Rise Country Club, and downtown and midtown Atlanta. 

Napali Capital’s acquisition of Mountain Lake Apartments is part of its long-term strategy to grow its portfolio and strengthen its focus on making passive income streams for its investors.

Napali Capital’s research reveals rent growth in Stone Mountain over the past five years reached 22 percent. This statistic reflects that this market is catching up to similar nearby markets like Decatur at 35 percent rent growth and Norcross at 38 percent rent growth in the same period. Rising demand levels are due to strong job growth in the region. The 29-county Atlanta Metropolitan Statistical Area (MSA) added nearly 77,000 jobs between May 2015 and May 2016.

Co-founder and Managing Partner of Napali Capital, Thomas Black, MD, said: “We are thrilled to have closed this investment offering in Stone Mountain, Georgia. This offering will deliver solid double digit returns to our investors. We will start immediately implementing our business plot, which will improve operating performance and grow rental income.”

Powered by WPeMatico

DURHAM, NC – Independence Realty Trust announced it has completed three transactions in June 2017, aggregating $70.6 million, related to its ongoing capital recycling strategy.

IRT completed the acquisition of a 328-unit apartment community located in Durham, North Carolina for $42.95 million. Constructed in 2002, the community is located in the South Durham submarket; the fourth-fastest growing submarket by rent growth in the Raleigh-Durham MSA. As of May 31, 2017, the community was 95.2% occupied and for the three months finished May, 2017, had an average effective rent per occupied unit of $1,039.

IRT used net proceeds from recent dispositions and its line of credit to buy the community. IRT previously managed this property on behalf of RAIT Financial Trust.

During June 2017, IRT sold two class C communities, a 200-unit community in Newport News, Virginia on June 1 and a 354-unit community in Indianapolis, Indiana on June 9, for a combined sale price of $27.6 million. IRT expects to recognize a gain of approximately $7.8 million associated with the sales in the quarter ending June 30, 2017. Both communities were classified as held for sale.

“These transactions underline our commitment to strengthening our portfolio composition by investing in well-located, middle-market communities in attractive non-gateway markets,” said Scott Schaeffer, Chairman and CEO of IRT. “This acquisition is a perfect fit with our investment thesis as it increases our scale in the Raleigh-Durham market, which continues to benefit from its proximity to prestigious universities, a thriving workforce, and world-class employers. The disposition of the two legacy class C communities is a key milestone in the efficient execution of our capital recycling strategy initiatives.”

Independence Realty Trust is a real estate investment trust that owns and operates 47 multifamily apartment properties, totaling 13,198 units, across non-gateway U.S. markets, including Louisville, Memphis, Atlanta and Raleigh. IRT’s investment strategy is focused on gaining scale within key amenity rich submarkets that offer excellent school districts, high-quality retail and key employment centers.

Powered by WPeMatico