SAN ANTONIO, TX - Pure Multi-Family REIT announced the successful closing of the Brackenridge at Midtown, a multi-family apartment community in San Antonio, Texas for a purchase price of $51 million.
Brackenridge was constructed in 2014 and consists of 282 brand new luxury residential units averaging 852 square feet.
Brackenridge combines urban living amongst a park-like setting with heritage oaks, a manicured Village Green, an expansive pet park, spectacular views, and Brackenridge Park one block to the west. Within the same submarket lies The Pearl, a commercial area brimming with nightlife, restaurants, and retail. Several major employers are within a 2-miles radius of Brackenridge including: Fort Sam Houston, University of the Incarnate Word, Trinity University, and Downtown San Antonio. Fort Sam Houston is the largest public sector employer in the San Antonio metro area with over 30,000 employees and is located only a few blocks to the east of Brankenridge.
Brackenridge offers custom home interior features such as stainless steel appliances, granite countertops, wood-style flooring and walk-in closets.
Pure Multi funded the purchase price of Brackenridge with proceeds from its bought deal financing which closed on May 8, 2015, proceeds from the sale of Oakchase Apartment Homes, which closed on September 2, 2015, and new first mortgage financing in the amount of US$30,600,000, which bears a fixed interest rate of 3.72% per annum for a term of 12 years. The purchase price represents a stabilized going-in capitalization rate of 5.60%.
Steve Evans, CEO, commented, "The closing of the brand-new Brackenridge acquisition doubles our footprint in the San Antonio market as we continue our strategy of acquiring assets in clusters in the Sunbelt's leading economies. We like San Antonio for its steady job and population growth and we believe the Pearl area is one of the leading submarkets in San Antonio. Located within walking distance of tenant demand drivers like the Riverwalk, a thriving local arts community, restaurants, shopping, nightlife, and local employment centres, we believe that Brackenridge is extremely well positioned for future growth.
"By selling one of our oldest assets, Oakchase Apartment Homes (built in 1984) at a 5.80% capitalization rate, and using the proceeds on a tax-deferred basis by way of the 1031 like-kind exchange program to acquire a brand-new asset at a 5.60% capitalization rate, we continue to create unitholder value organically through strategic upgrading of our portfolio."
As a result of the Brackenridge acquisition, Pure Multi's portfolio now has a weighted average year of construction of 2002, and includes 15 multi-family properties situated on 253 acres of land, with 4,701 apartment units in 267 buildings.