Starlight U.S. Multi-Family (No. 2) Core Fund Completes Acquisition of Initial Properties

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Nov. 18, 2013 /CNW/ - Starlight U.S. Multi-Family (No. 2) Core Fund (the "Fund") (TSXV: SUD.A, SUD.U) announced today that it has successfully completed the acquisition of interests in a portfolio of two properties located in Houston and Austin, Texas (the "Initial Portfolio") comprising 752 multi-family residential units for an aggregate purchase price of approximately US$63.6 million, which was satisfied by way of approximately US$16.8 million in cash from the proceeds of the Fund's recent initial public offering, US$25.0 million in cash from a new mortgage financing and the assumption of mortgages in the principal amount of approximately US$21.8 million.

The Fund indirectly acquired a 65% interest in the Falls at Eagle Creek, a property located 26 kilometres northeast of downtown Houston and 16 kilometres southeast of George Bush Intercontinental Airport at 9702 N. Sam Houston Parkway East, Humble, Texas. In connection with the acquisition, the Fund assumed existing mortgages on the property in the amount of US$21.8 million (as of September 16, 2013) maturing in October 2016, with two, one-year extension options at an all-in interest rate of 3.98% per annum. The property is comprised of 412 apartment suites in 18 three-storey, walk-up buildings on a 22.13 acre site ranging in size from one bedroom to two bedrooms and includes a central clubhouse that contains a number of modern amenities, including a media room with a flat screen TV, a business centre with Wi-Fi access, a demonstration cooking area, internet café, fitness centre (including free weights, resistance machines, circuit training and cardio equipment), billiard and shuffle board entertainment areas and two outdoor swimming pools with a covered barbeque area, patio seating, and a covered patio with a fireplace. The suites have efficient layouts and contain modern features including crown molding, faux granite counter tops and nine-foot ceilings. The property has been and will be managed by Greystar Real Estate Partners, the largest third-party multi-family property manager in the United States.

The Fund also indirectly acquired Palm Valley Apartments, a property located approximately 31 kilometres north of downtown Austin at 1301 North A.W. Grimes Boulevard, in Round Rock, Texas. The Fund has secured a first mortgage loan on the property in the amount of US$25.0 for a three-year term with two, one-year extension options at an interest rate of LIBOR + 2.00% per annum. The property is comprised of 340 apartment suites in 17 three-storey, garden style buildings on an 18.6 acre site, ranging in size from one bedroom to three bedrooms. Property amenities include a resort style swimming pool with a sun deck, cabana with outdoor grilling station, outdoor fireside lounge, sand volleyball courts, a private nature trail for walking and jogging and a spacious clubhouse complete with a state-of-the-art, 24 hour fitness centre, tech/business centre, game room with billiards table and an internet lounge and café. Apartment suites feature nine-foot ceilings with sleek interior features that include crown molding, track lighting and vinyl hard wood or ceramic tile flooring in wet areas. Gourmet kitchens are equipped with brushed nickel hardware, black on black appliances, ceramic backsplash and maple cabinetry. The property will be managed by Alliance Residential Company, the tenth largest third-party multi-family property manager in the United States

The Fund has provided notice to the TSX Venture Exchange of the completion of its acquisition of the Initial Portfolio and expects its Class A Units and Class U Units to commence trading on or about November 19, 2013.

About Starlight U.S. Multi-Family (No. 2) Core Fund

The Fund is a limited partnership 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 United States multi-family real estate market.

This press release contains statements that may constitute forward-looking information within the meaning of Canadian securities laws and which reflect the Fund's current expectations regarding future events, including the commencement of trading of securities of the Fund on the TSX Venture Exchange. The forward-looking statements involve risks and uncertainties including those set forth in the Fund's final prospectus dated October 30, 2013, including under the section "Risk Factors", a copy of which can be obtained at www.sedar.com. Actual results could differ materially from those projected herein. Material factors and assumptions were used by management of the Fund to develop the forward-looking information. Investors are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the Fund undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Starlight U.S. Multi-Family (No.2) Core Fund

For further information:

Evan Kirsh
President, Starlight U.S. Multi-Family (No. 2) Core Fund
647-725-0417
ekirsh@starlightus.com

Organization Profile

Starlight U.S. Multi-Family (No.2) Core Fund

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