TORONTO and DALLAS, Oct. 27, 2014 /CNW/ - Milestone Apartments Real Estate Investment Trust (TSX: MST.UN) ("Milestone" or the "REIT") today announced that it has completed the purchase of The Village at Legacy Ridge ("Legacy Ridge" or the "Property"), a 221-unit multifamily apartment community located in the Westminster submarket of Denver, Colorado, for a purchase price of US$40.5 million. This acquisition was previously announced by the REIT on October 6, 2014.
Legacy Ridge was built in 2001 and is currently approximately 97% occupied, with average monthly rents of approximately US$1,200 per unit. 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 features extensive amenities consistent with Milestone's established portfolio and is in close proximity to major transportation corridors and large employment centers, including downtown Denver and Boulder.
As part of the purchase consideration for Legacy Ridge, the REIT has assumed a fixed rate mortgage of approximately US$23.6 million at an interest rate of 3% and fully amortized on a 35 year schedule maturing in October 2047. These financing terms further decrease the REIT's weighted average interest rate and extend the maturity of its mortgage note obligations. The balance of the purchase price will be funded using proceeds raised from the REIT's recently completed C$115.1 million bought deal equity offering.
Milestone is an unincorporated, open-ended real estate investment trust that is governed by the laws of Ontario. The REIT's portfolio consists of 58 multifamily garden-style residential properties, comprising 18,993 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, Texas, 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