Source: Milestone Apartments REIT / #Apartments #Multifamily
DALLAS, TX - Milestone Apartments Real Estate Investment Trust announced that it has completed the purchase of Estates at Vista Ridge, previously known as Broadstone Vista Ridge, a 372-unit, Class A multifamily apartment community located in the Lewisville submarket of Dallas, Texas, for a purchase price of $45 million.
The purchase of Vista Ridge was funded through a combination of: a new 6-year interest only fixed-rate mortgage of approximately $24.9 million at an interest rate of 3.38% maturing in October 2021; the issuance of 265,749 class B limited partnership units of Milestone Multifamily Investors LP at the previously agreed upon price of US$11.50 per class B unit (representing a consideration of approximately US$3.1 million); and the balance of the purchase was funded with cash using proceeds received from the REIT's recent disposition of Villas at Cave Creek.
As part of Milestone's overall business strategy to continuously high-grade the REIT's portfolio to optimize cash flow performance and build long-term Unitholder value through strategic acquisitions and dispositions, the REIT also announced the recent disposition of Villas, a 696-unit multifamily apartment community in Phoenix, Arizona, that was built in 1986, for gross proceeds of $43.2 million.
The in-place cap rate for Villas was 5.9% and the floating rate debt associated with this property was $17.8 million with an interest rate of approximately 1.73%.
The Milestone Group is a privately-held real estate investment management company with expertise and presence in major metropolitan markets throughout the United States. The firm has corporate offices in Dallas, Texas and New York, New York with regional acquisition and management offices across the United States. Founded in 2004, The Milestone Group has a strong track record of investing in the U.S. multifamily sector, including completion of more than US$4.5 billion in multifamily transactions.