Source: Monogram Residential Trust / #Apartments #Multifamily
PLANO, TX - Monogram Residential Trust, an owner, operator and developer of luxury apartment communities in select markets across the United States, announced that the Company has acquired PGGM's joint venture equity interests in six multifamily communities and one mezzanine loan for a gross purchase price of $224.6 million.
The Company funded the acquisition through $106.4 million of the allocable share of existing debt on the six purchased interests and the remainder with cash and draws on its existing credit facilities. As a result of this transaction, Monogram added five multifamily communities and one mezzanine loan to its wholly owned portfolio and increased its interest in another multifamily community to 93.5%.
As part of the transaction, the Company received $4.5 million in final payment of a promoted interest and a disposition fee for the acquired interests in the six multifamily communities and one mezzanine loan that PGGM sold to the Company.
"We are pleased with this transaction, as it is confirmation of our strategy to utilize joint ventures as a capital-efficient way to grow our wholly owned portfolio of high quality communities at low risk and attractive returns," commented Mark Alfieri, Monogram's Chief Executive Officer, President and Chief Operating Officer.
This transaction will add 1,631 units to the Company's wholly owned portfolio, bringing the Company's total wholly owned unit count to 4,081. The multifamily communities that were part of the transaction are located in the following Metropolitan Statistical areas: Washington DC, Boston, Orlando, Denver, Las Vegas and Dallas, and were 95.8% occupied as of March 31, 2015.
Morgan Stanley & Co. LLC acted as financial advisor to Monogram in connection with the PGGM transaction.