TORONTO and DALLAS, March 31, 2015 /CNW/ - Milestone Apartments Real Estate Investment Trust (TSX: MST.UN) ("Milestone" or the "REIT") today announced that it has completed the purchase of Heritage on Millenia ("Heritage" or the "Property"), a 303-unit, Class A multifamily apartment community located in South Orlando, Florida, for a purchase price of US$40.0 million. This acquisition was previously announced by the REIT on February 2, 2015.
Heritage was built in 2006 and is currently approximately 96.0% occupied, with average monthly rents of approximately US$1,100. The Property's average in-place rents are higher than the REIT's portfolio average in part due to a higher proportion of two and three-bedroom apartment suites. The Property's average in-place rent per square foot is consistent with the REIT's portfolio and middle market strategy. Milestone expects to drive additional value at Heritage through its unit upgrade program. The Property features extensive amenities consistent with Milestone's established portfolio, has convenient access to several major transportation corridors and is located within close proximity to large employment centers, including downtown Orlando.
As part of the purchase consideration for Heritage, the REIT has entered into a new 10-year interest only fixed-term mortgage of approximately US$22.1 million at an interest rate of 3.16% maturing in March 2025. The balance of the purchase price was funded using the REIT's available cash and revolving line of credit.
Milestone is an unincorporated, open-ended real estate investment trust that is governed by the laws of Ontario. The REIT's portfolio consists of 59 multifamily garden-style residential properties, comprising 19,744 units that are located in 13 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 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, Texas and New York, New York with regional acquisition and management offices across the United States. Founded in 2004, The Milestone Group has a strong track record of investing in the U.S. 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 REIT
For further information: Robert Debs, Investor Relations, Milestone Apartments REIT, 214.561.1215; Bruce Wigle, Investor Relations, Bay Street Communications, Tel: 647.496.7856