PHILADELPHIA, PA - Independence Realty Trust, Inc. announced the completion of the following two acquisitions of apartment communities for purchase prices aggregating $52.2 million:
IRT acquired an apartment community located in Memphis, Tennessee, for a purchase price of $27.9 million. The purchase price was comprised of approximately $26.5 million cash and approximately 137,361 IRT operating partnership units valued at approximately $1.4 million.
IRT acquired an apartment community located in Raleigh, North Carolina for $24.3 million cash.
IRT funded the cash portion of these purchase prices with a portion of the net proceeds of IRT’s offering of its shares of common stock completed in July 2014. RAIT Residential, a RAIT subsidiary, will provide the property management services for the apartment communities.
The Memphis, Tennessee property is located in Cordova, a top submarket of Memphis, Tennessee and is a desirable, supply constrained area where the average household income within one mile of the property is approximately $105,893. The 360 apartment unit-community consists of 84 one bedroom, one bathroom apartments, 228 two bedroom, two bathroom apartments and 48 three bedroom, two bathroom apartments with an average unit size of 1,087 square feet. The property was constructed in 2001. As of August 26, 2014, the occupancy of the property was 96% and it had an average effective rent per unit of $837.
The Raleigh, North Carolina property’s previous ownership invested in an extensive renovation of the property between 2011 and 2012 and the property is ideally located near the employment hub of Downtown Raleigh. The average household income within one mile of the property is approximately $52,106. The 266 apartment unit-community consists of 115 one bedroom, one bathroom apartments, 121 two bedroom, two bathroom apartments and 30 three bedroom, two bathroom apartments with an average unit size of 952 square feet. The property was constructed in 2001. As of September 5, 2014, the occupancy of the property was 96% and it had an average effective rent per unit of $771.