Milestone Apartments REIT Closes on Multifamily Acquisition in Dallas
- Oct 01, 2015
Milestone Apartments REIT acquired Broadstone Vista Ridge for $45 million from an undisclosed buyer. Following the purchase, the property has been renamed Estates at Vista Ridge. The community is located at 160 E Vista Ridge Mall Drive in Lewisville, Texas.
“The acquisition of Broadstone represents another off-market opportunity for Milestone and will further expand the REIT’s presence in the Dallas-Fort Worth market, one of the fastest growing markets in the U.S.,” Robert Landin, CEO of Milestone, said in a prepared statement.
The acquisition was funded through three processes: a new 6-year interest only fixed-rate mortgage of approximately $24.9 million at an interest rate of 3.38 percent maturing October 2021; the issuance of 265,749 class B limited partnership units of Milestone Multifamily Investors LP at $11.50 per class B unit (representing approximately $3.1 million); and the balance of the purchase was funded with cash using proceeds received from the REIT’s recent disposition of Villas at Cave Creek, a 696-unit multifamily apartment community in Phoenix, Ariz., for gross proceeds of $43.2 million.
The in-place cap rate for Villas was 5.9 percent and the floating rate debt associated with this property was $17.8 million with an interest rate of approximately 1.73 percent.
Built in 2006, Estates at Vista Ridge offers one- to three-bedroom apartments ranging in size from 666 square feet to 1,237 square feet. Residents here have access to two swimming pools, outdoor fireplace, clubhouse, garages and covered parking, fitness center, and cardio theater. Unit amenities include private patios and balconies, nine foot ceilings, and oval garden tubs.
Image courtesy of Estates at Vista Ridge