LITTLE ROCK, AR - BSR Real Estate Investment Trust announced that it has closed on the acquisition of Towne Park at Har-Ber Apartments in Springdale, Arkansas for $28.9 million. The transaction was funded utilizing BSR's revolving credit facility. The addition of Towne Park is expected to be accretive to the REIT's adjusted funds from operations on a per unit basis.
Towne Park, which was constructed in two phases in 2016 and 2017, is a 237-unit multifamily property comprising one, two, and three bedroom apartments and townhomes in the high-growth Northwest Arkansas metropolitan statistical area ("MSA"). The property is the REIT's second purchase in this region in just under two years, following the acquisition of Mountain Ranch Apartments, a 360 unit garden-style complex less than 10 miles away.
Northwest Arkansas is the fastest growing region of the state and 14th fastest growing MSA in the United States. Towne Park is located less than a 15 mile drive from the headquarters of three Fortune 500 companies including, Walmart. Median household income in Northwest Arkansas rose 8.1% in the past 12 months. In the multifamily space, average lease prices in Northwest Arkansas have increased 18% over the past four years. Multifamily vacancy rates in this MSA currently sit at 3.9%, representing a decrease of 260 basis points over the past four years.
"We are thrilled to add Towne Park to our portfolio," said John Bailey, Chief Executive Officer of the REIT. "This acquisition increases our exposure to the fastest growing market in our home state of Arkansas and is consistent with our strategy of clustering properties to maximize operating efficiencies."
In the past two and a half years, BSR has grown its portfolio by 16% through the acquisition of five properties with a combined 1,394 units. The total unit count for BSR, which completed an IPO just five months ago on the Toronto Stock Exchange, now stands at 10,116 units.