HOUSTON, TX - BSR Real Estate Investment Trust announced that it has acquired Broadstone Park West, a 370 suite, garden style residential community in Houston, Texas for US$51 million from Starlight Investments.
The transaction was financed through a combination of a draw on the REIT's credit facility of approximately US$40.0 million and the issuance of approximately US$10.4 million of trust units of the REIT at US$12.25 per unit, net of prorations. Debt to gross book value is 49.8% and the REIT has US$54.5 million in liquidity after the purchase. The addition of the Property is expected to be immediately accretive to the REIT's adjusted funds from operations ("AFFO") on a per unit basis.
Broadstone was constructed in 2014 in the Houston metropolitan statistical area ("MSA"), the fifth largest MSA in the United States and home to 21 Fortune 500 companies. The Property has numerous amenities including a clubhouse, fitness center, resort-style swimming pool with sun deck, garages, and a dog park. The REIT now owns 2,332 apartment units in the Houston MSA, where BSR has been operating for 20 years.
"The acquisition of Broadstone is another example of BSR growing according to our defined clustering strategy," stated John Bailey, BSR's Chief Executive Officer. "Broadstone is an attractive asset with the newer amenities that our residents want. We will add value to the Property by applying it to our internal management platform, as we have done with other properties acquired since our IPO."
The purchase of Broadstone marks the eleventh property acquisition for BSR since completing its initial public offering (the "IPO") on the Toronto Stock Exchange in May 2018. Other post-IPO acquisitions included Satori at Long Meadow Apartments constructed in 2019 and also in the Houston MSA. In the Austin MSA, acquisitions included Ariza at Plum Creek, Retreat at Wolf Ranch, Cielo, and Madrone Apartments. In the Dallas-Fort Worth MSA, acquisitions included Wimberly, Auberry at Twin Creeks, and Riverhill Apartments. Additional acquisitions were Brandon Place Apartments in Oklahoma City, OK and Towne Park at Har-ber Apartments in the Northwest Arkansas MSA. These acquisitions have added 3,235 apartment units to the REIT's portfolio with an average age of ten years compared to the 20 dispositions to-date which total 3,666 apartment units and an average of age of 38 years.
Source: BSR Real Estate Investment Trust