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TORONTO, Feb. 19, 2015 /CNW/ - Starlight U.S. Multi-Family (No. 1) Core Fund (TSX.V: UMF.A, UMF.U) ("Fund No. 1") and Starlight U.S. Multi-Family (No. 3) Core Fund (TSX.V: SUS.A, SUS.U) ("Fund No. 3") announced today that they have acquired Belle Haven Apartments, a certified LEED-Silver, 176 unit, garden style, Class "A", apartment complex, completed in 2014 and located in a rapidly growing area in northeast Charlotte, North Carolina at 9005 Post Canyon Lane. LEED-Silver certifies that the property is environmentally efficient and provides its residents with the benefit of reduced energy and water costs as well as a lower carbon and pollution footprint.
In connection with the acquisition of Belle Haven Apartments, Fund No. 1 has acquired an indirect 662/3% interest and Fund No. 3 has acquired an indirect 331/3% interest. All decision making in respect of Belle Haven Apartments, including day-to-day and material decisions, will be jointly made by Fund No. 1 and the Fund No. 3 through established governance practices.
Pursuant to a purchase and sale agreement effective January 16, 2015 as amended from time to time, Belle Haven Acquisition LLC, an indirect wholly owned subsidiary of Fund No. 1 and Fund No. 3, purchased Belle Haven Apartments unencumbered for the purchase price of approximately US$26.4 million. In connection with the acquisition of Belle Haven Apartments, new financing in the amount of approximately US$22.9 million has been secured for a three year term with two one year extensions available. Subject to certain conditions, financing is interest only and will be payable at a blended rate of approximately 3.68%. Fund No. 1 and Fund No. 3 have each assumed responsibility for the liabilities of Belle Haven Apartments on a pro-rata ownership basis.
Belle Haven Apartments
Belle Haven Apartments consists of seven, three storey walk-up buildings on a 12.89 acre site comprised of one, two and three bedroom units. Each apartment unit at Belle Haven Apartments contains modern features including energy star stainless steel appliances, designer dark espresso kitchen cabinetry, granite countertops, upgraded track lighting and private patios or balconies. Amenities at Belle Haven Apartments include a central clubhouse containing a state-of-the-art fitness centre with yoga studio, a sports and entertainment lounge, a games room and a business centre. Exterior features include a swimming pool with water trellis, barbeque grills, a dog park with a pet washing station and a car care centre. As of February 12, 2015, Belle Haven Apartments' occupancy was 92.6%.
Fund No. 1 and Fund No. 3 have retained Greystar Real Estate Partners ("Greystar"), the largest third party, multi-family property manager in the United States, as the property manager at Belle Haven Apartments. Greystar is currently managing five additional communities for Fund No. 1 and Fund No. 3.
Fund No. 1 and Fund No. 3 Portfolio
Following completion of the acquisition of Belle Haven Apartments, Fund No. 1 has interests in and operates a portfolio comprising 2,180 recently constructed, Class "A", stabilized, income producing, multi-family real estate units located in Dallas and Houston, Texas and Charlotte, North Carolina.
Following completion of the acquisition of Belle Haven Apartments, Fund No. 3 has interests in and operates a portfolio comprising 1,493 recently constructed, Class "A", stabilized, income producing, multi-family real estate units located in Dallas, Austin and Houston, Texas and Charlotte, North Carolina.
About Starlight U.S. Multi-Family Core Fund and Starlight U.S. Multi-Family (No. 3) Core Fund
Fund No. 1 and Fund No. 3 are each limited partnerships formed under the Limited Partnerships Act (Ontario) for the primary purpose of indirectly acquiring, owning and operating a portfolio of diversified income producing rental properties in the U.S. multi-family real estate market.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Starlight U.S. Multi-Family Core Fund
For further information: Evan Kirsh, President, Starlight U.S. Multi-Family Core Fund, President, Starlight U.S. Multi-Family (No. 3) Core Fund, 647-725-0417, firstname.lastname@example.org