Source: Milestone Apartments REIT / #Apartments #Multifamily
DALLAS, TX - Milestone Apartments REIT announced that it has entered into an agreement to purchase the Century Windermere, a 346-unit Class A multifamily apartment community located in the Alpharetta/Cumming submarket of Atlanta, Georgia, for a purchase price of US$46 million. The purchase price represents an initial capitalization rate of 6.36% and the transaction is expected to be immediately accretive to the REIT's forecasted AFFO per unit. The acquisition will increase the diversification of the REIT's portfolio, and increase the proportion of Milestone units in the Atlanta Metropolitan Statistical Area from 4.34% to 6.26%. The acquisition is expected to close by June 30, 2013.
"Century Windermere is an attractive asset that complements our established portfolio of high-quality multifamily properties serving mid-market renters in the US Southeast and Southwest. The property has a long-term trend of consistently high occupancy and steady rent growth," said Robert Landin, CEO of Milestone Apartments REIT. "We are seeing similarly attractive investment opportunities in a number of our target markets and remain focused on the continued advancement of our growth strategy through the acquisition of complementary assets that are accretive to the REIT's AFFO."
Century Windermere was built in 2001, features extensive amenities, consistent with the REIT's established portfolio, and is currently 95.5% occupied. The property benefits from its close proximity to several employment hubs, all of which have shown employment growth in recent years. In addition, Century Windermere is the only multifamily property located in the Windermere Planned Urban Development, an exclusive 1,400 acre master-planned luxury home and golf course community.
As part of the purchase consideration, the REIT has negotiated an interest-only 10-year fixed-term mortgage of approximately US$25.3 million at an interest rate of 3.35% - 3.40%. The balance of the purchase price will be funded by drawing on the REIT's US$50 million revolving credit facility. The acquisition, which is subject to customary closing conditions, is expected to close by June 30, 2013.
Milestone Apartments REIT is an unincorporated, open-ended real estate investment trust that is governed under the laws of Ontario. The REIT's portfolio consists of 52 multifamily garden-style residential properties, comprising 16,944 units that are located in 10 major metropolitan markets throughout the Southeast and Southwest United States.