MAA Buys 260-Unit Asset in Virginia
- May 22, 2013
Fredericksburg, Va.—MAA has added a new upscale apartment community to its 49,873-unit portfolio with the acquisition of Station Square at Cosner’s Corner. The 260-unit asset, which is located in Fredericksburg, Va., was built in 2012 as an NAHB Research Center ‘Green Certified’ property.
Station Square at Cosner’s Corner is located close to the Spotsylvania County Regional Medical Center and the 1.5 million-square-foot retail shopping area of Cosner’s Corner. It is also a short drive from the new commuter terminal for the Virginia Railway Express, which provides direct access to Union Square in Washington, D.C.
“We are pleased to bolster our presence in the Fredericksburg market area with the addition of this well located, high-end community,” says Al Campbell, executive vice president and CFO at MAA. “We feel its upscale amenities and central location to major employment hubs in combination with our proven operating platform provides an appealing choice for the rental market and will generate a terrific long-term investment for MAA.”
The community features a mix of one-, two- and three-bedroom floor plans with units averaging 1,032 square feet in size. Amenities include an Internet café, fitness center, private screening room, saltwater pool and dog park.
Trade Street Residential buys two communities
Charleston, S.C., & Durhman, N.C.—Trade Street Residential Inc. has completed the acquisition of two communities that total 500 apartment units for a total purchase price of $63 million. The properties include Woodfield St. James, a 244-unit asset in Charleston ($27.2 million), and Woodfield Creekstone, a 256-unit community in Durham ($35.8 million).
“We are pleased to announce the acquisitions of these two communities, successfully deploying capital raised in our recent public offering,” says Michael Baumann, chairman and CEO of Trade Street Residential. “As we move forward as a public company, we will continue to seek opportunities to increase our property portfolio through the acquisition of additional high-quality, well located communities in vibrant markets across the Sunbelt, which improve the growth profile and diversification of our cash flows.”
Woodfield St. James was built in 2009, is currently 98 percent occupied, and has an average monthly effective rent of $901 per unit. Trade Street intends to put mortgage financing on the property and has obtained a lender commitment for a $19 million 10-year first mortgage at a fixed rate of 3.75 percent with two years of interest only payments followed by principal and interest payments based on a 30-year amortization schedule thereafter.
Woodfield Creekstone was completed in April 2013 and is currently 92.6 percent leased and 83.6 percent occupied. The purchase was partially funded with a new $23.3 million 10-year term first mortgage at a fixed interest rate of 3.88 percent. Payments are interest only for the first three years followed by principal and interest payments based on a 30-year amortization schedule thereafter.