Milestone Apartments REIT Completes US$50.3 Million Acquisition of Legacy Heights Apartments in Denver, Colorado
TORONTO/DALLAS, July 24, 2014 /CNW/ - Milestone Apartments Real Estate Investment Trust (TSX: MST.UN) ("Milestone" or the "REIT") today announced that it has completed the purchase of Legacy Heights, a 384-unit multifamily apartment community located in the Westminster submarket of Denver, Colorado, for a purchase price of US$50.3 million. This acquisition was previously announced by the REIT on May 1, 2014.
Legacy Heights was built in 1998 and has the potential for a value-add program relating to unit interior upgrades. The property features extensive amenities consistent with Milestone's established portfolio and is in close proximity to large employment centers, including downtown Denver and Boulder, Colorado, as well as major transportation corridors.
In connection with the acquisition, Milestone has assumed a US$34.5 million mortgage on the property at a fixed rate of 3.78%, with an interest only portion through August 1, 2016 and with the loan maturing on August 1, 2022. The balance of the purchase price was funded using proceeds raised from the REIT's recent bought deal equity financing and from the refinancing of its US$228.6 million mortgage debt facility.
Milestone is an unincorporated, open-ended real estate investment trust that is governed by the laws of Ontario. The REIT's portfolio consists of 57 multifamily garden-style residential properties, comprising 18,772 units that are located in 12 major metropolitan markets throughout the Southeast and Southwest United States. Milestone is the largest real estate investment trust listed on the TSX focused solely on the United States multifamily sector. The REIT operates its portfolio through its internal property management company, Milestone Management, LLC, which has more than 900 employees across the United States. Based in Dallas, TX, TMG Partners, L.P., an affiliate of The Milestone Group, LLC, is the external asset manager of the REIT. For more information, please visit www.milestonereit.com.
About The Milestone Group, LLC
The Milestone Group, LLC 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, TX and New York, NY with regional acquisition and management offices across the United States. Founded in 2004, The Milestone Group, LLC has a strong track record of investing in the United States multifamily sector, including completion of more than US$4.5 billion in multifamily transactions. For more information, please visit www.milestonegp.com.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the REIT's expectations, estimates, forecasts and projections. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the REIT's annual information form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update any such statement, whether as a result of new information, future events or otherwise.
SOURCE Milestone Apartments REITFor further information:
Robert Debs, Investor Relations
Milestone Apartments REIT
BMIR Investor Relations
Tel: 416.447.4740, x 232