HOUSTON, TX - NexPoint Residential Trust announced the completion of the acquisition of a 924-unit apartment portfolio in Houston, Texas. NexPoint Residential Trust, through its operating partnership, NexPoint Residential Trust Operating Partnership, L.P., acquired a two-property portfolio in Houston, Texas for approximately $108 million.
The properties, Old Farm Apartment Homes, a 734-unit apartment property built in 1998, and Stone Creek at Old Farm Apartments, a 190-unit apartment property built in 1999 (the "H2 Portfolio"), are situated on 35.1 acres of contiguous land surrounded by some of Houston's most affluent single family neighborhoods and three major regional employment centers (Uptown, Westchase and Medical City).
The H2 Portfolio acquisition was structured as a reverse 1031 exchange to facilitate the Company's continued plan to recycle capital from dispositions of assets from non-core markets into well-located, "covered-land" assets in longer-term target markets.
The Company funded the purchase price with borrowings of approximately $108 million under its credit facilities with KeyBank National Association and Freddie Mac. In connection with the acquisition, the Company expanded its credit facility with Freddie Mac to $300.0 million under the previously disclosed terms of the credit agreement.
Following the completion of the reverse 1031 exchanges, management expects the H2 Portfolio's loan-to-value ratio to stabilize at approximately 55%.
This is the Company's first acquisition in Houston since its lone purchase in Houston in November 2014 and opportunistically expands NXRT's footprint in the market to 1,164 units, bringing NXRT's total portfolio to 39 properties consisting of 12,965 units in 10 markets as of January 3, 2017.
Management has published more information on the merits of the acquisition in an investor presentation at the Investor Relations section of the NXRT website at www.nexpointliving.com.
Source: NexPoint Residential / #Apartments #Multifamily