Pure Multi-Family REIT Expands Portfolio by $117.5M
- Jan 27, 2016
San Antonio—Pure Multi-Family REIT of Vancouver, Canada recently entered into an agreement to purchase a multifamily portfolio located in San Antonio, Texas. The portfolio, dubbed the “TPC Portfolio,” consists of two apartment communities valued together at $117.5 million.
Pure Multi wishes to fund the acquisition with proceeds from its bought deal financing, which closed on December 11, 2015, as well as proceeds from the sale of Windsong Apartments, which closed on December 30, 2014, and with a new first mortgage financing. The company estimates the new first mortgage financing will be approximately $78 million for both properties, with an average fixed interest rate of approximately 4 percent per annum for an average term of 12 years. The purchase price represents a stabilized cap rate of approximately 5.5 percent.
The first of the two properties in the portfolio is located at 22800 Bulverde Road. It was constructed in 2007 and consists of 344 luxury residential units averaging 1,135 square feet. The Class A community sits on 34.8 acres in the Cibolo Canyons submarket. Amenities include a luxurious 13,000-square-foot clubhouse, a 3,500-square foot fitness center, and onsite European Grand Spa, townhome buildings with attached garages, a resort style swimming pool and barbecue areas with grills.
The second property is located at 4092 TPC Parkway. It was built in 2014 and offers 416 new luxury residential units averaging 943 square feet. The Class A community sits on 19.4 acres in the same Cibolo Canyons submarket with expansive views of downtown San Antonio. Amenities include a luxurious clubhouse, a 24-hour state-of-the art fitness center, detached private garages, an infinity-edge swimming pool and barbecue areas with grills.
“We are excited to add the TPC Portfolio, consisting of two top-quality assets, located in the prestigious Cibolo Canyons master-planned sub-division, to our existing San Antonio holdings. With these acquisitions, we have once again successfully executed our portfolio renewal strategy through recycling our capital out of the profitable sale of Windsong Apartments and redeploying it into these newer assets, thus enhancing the overall portfolio quality and shareholder value. In conjunction with these two acquisitions, we continue to undertake due diligence on a third portfolio asset, located in Austin, Texas,” said Steve Evans, CEO of Pure Multi-Family REIT.
The transaction is expected to close on March 1, 2016. The acquisition will bring Pure Multi’s portfolio to 16 multifamily properties totaling 5,197 apartments on 298 acres of land.