Resource Real Estate’s REIT Enters Agreement to Acquire Another REIT’s Portfolio for $52.7M
- Jul 31, 2013
Resource Real Estate Opportunity REIT, a non-traded real estate investment trust sponsored by Resource Real Estate Inc. recently announced that it has entered into an agreement and plan of merger to acquire Paladin Realty Income Properties L.P.
Paladin Realty Income Properties is the operating partnership through which Paladin Realty Income Properties Inc., a non-traded REIT that focuses on multifamily investments, owns its real estate investments. Excluding closing costs and subject to some price adjustments, the merger consideration has been agreed upon at $52.7 million.
Paladin Realty Income Properties at the moment owns equity interests with certain priority rights in 12 different real estate joint ventures with operating partners. One of the properties owned by the joint ventures is currently under contract to be sold before the close of the merger. The assets which will be purchased by Resource Real Estate Opportunity are expected to consist of 10 multifamily assets with a total of 2,513 units and two office properties featuring 75,518 rentable square feet. The properties include Hilltop located at 6700 East 87 Street in Kansas City, Mo.; Pheasant Run located at 1102 North East Independence Avenue in Lee’s Summit, Mo.; and Retreat at Shawnee located at 11128 West 76th Terrace in Shawnee, Kansas. Other multifamily assets include Champion Farms (Louisville, Ky.), Fieldstone (Woodlawn, Ohio), Coursey Place (Baton Rouge, La.), Pines of York (Yorktown, Va.), Stone Ridge (Columbia, S.C.) and Conifer Crossing (Norcross, Ga.). The two office buildings are Two and Five Governor Park in San Diego.
Resource Real Estate Opportunity will own all of Paladin Realty Income Properties’ interests in the joint ventures and will own a majority interest in nine of them upon completion of the merger. At the moment Resource Real Estate Opportunity and its affiliates oversee around 27,000 multifamily units.
Photo Courtesy of: www.rentpheasantrun.com