All amounts are in $US Dollars unless otherwise stated
TORONTO, Jan. 18, 2017 /CNW/ - Firm Capital American Realty Partners Corp. ("the "Company"), (TSXV : FCA.U) is pleased to announce that the Company has closed its previously announced investment in a 115 unit apartment building joint venture located in the Washington, D.C. area (the "Property").
The Property, which consists of eight buildings, is located in Brentwood, Maryland and is considered as being part of the Washington D.C. area, was acquired for $9.8 million (including closing costs) and at a 7.6% going-in capitalization rate. The Property was purchased, in part, through the assumption of two mortgages totalling $7.8 million, with a weighted average interest rate of 5.18%. The Company, along with a consortium of investors (collectively the "Firm Capital Group") acquired a 50% interest in the joint venture (the "Joint Venture") alongside a local owner/property manger (collectively the "Partners") from the Baltimore area who, along with the Firm Capital Group, collectively funded the residual equity. The Company has a 50% interest in the Firm Capital Group's investment.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm Capital American Realty Partners Corp. focuses on capital partnership investing in U.S. income producing real estate & mortgage debt investments.
The Company is focused on the following investment platforms:
- Income Producing Real Estate Investments: Acquiring income producing U.S. real estate assets in major cities across the United States. Acquisitions are completed solely by the Company or in joint-venture partnership with local industry expert partners who retain property management; and
- Mortgage Debt Investments: Real estate debt and equity lending platform focused on major cities across the United States. Focused on providing all forms of bridge mortgage loans and joint venture capital.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements regarding the Company's intended use of the net proceeds of the Rights Offering; the Company's intention to complete any current or future proposed acquisitions; anticipated returns on its Joint Venture Investments in Washington D.C.; the anticipated closing date for the Joint Venture and the closing date for the Consolidation.
Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Company holds properties; volatility of real estate prices; inability to complete the Company's single family property disposition program or debt restructuring in a timely manner; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of the Company to implement its business strategies; competition; currency and interest rate fluctuations and other risks, including those described in the Company's public disclosure documents on SEDAR at www.sedar.com.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward- looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Additional information about the Company is available at www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital American Realty Partners Corp.
For further information: Robert McKee, Interim Chief Executive Officer, (416) 635-0221; Sandy Poklar, Chief Financial Officer, (416) 635-0221