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TORONTO, April 12, 2019 /CNW/ - Starlight U.S. Multi-Family (No. 1) Value-Add Fund (TSX.V: SUVA.A, SUVA.U) (the "Fund") announced today that it has completed the acquisition of the remaining interest of approximately 8.5% (the "Acquisition") in Landmark at Coventry Pointe ("Coventry Pointe"), a 250-unit, garden style, value-add multi-family property completed in 2002 and located in Atlanta, Georgia, pursuant to the previously disclosed terms. In connection with the Acquisition, the Fund now has a 100% interest in Coventry Pointe.
The Fund also announced today that it has refinanced the mortgage at Coventry Pointe for net proceeds of approximately US$2.6 million as well as a US$3.8 million capital advance line which can be drawn to fund future value-add initiatives at Coventry Pointe. The mortgage bears interest at LIBOR + 200 bps and provides for interest only repayments until maturity in January 2021 (the "Refinancing"). The proceeds from the Refinancing were partially used to fund the Acquisition.
Coventry Pointe consists of 18, three and four storey walk-up buildings on a 35.5 acre site comprised of one- bedroom, two-bedroom and three-bedroom suites. The apartment suites feature white raised-panel cabinets, white appliances including dishwashers and microwaves, brushed nickel and chrome hardware, vinyl flooring and pantries in the kitchen. Bedrooms and living areas include carpet flooring, wiring for ceiling fans, crown molding, oversized walk-in closets, and porches/balconies. The bathrooms are outfitted with garden tubs, tile surrounds and vinyl flooring. Indoor amenities include a spacious clubhouse, business centre, fitness room and an enclosed mail centre. Outdoor amenities include a resort-quality swimming pool, two tennis courts, a dog park, a large playground with a variety of equipment, a picnic area, green space with nature paths, and a car wash station. As part of the Fund's business plan, Coventry Pointe is being repositioned to a modern standard with upgraded suite finishes, attractive common areas and amenity spaces and improved curb appeal. As of April 1, 2019, Coventry Pointe's occupancy was 93.6%.
Following completion of the Acquisition, The Worthing Companies ("Worthing") continued as the property manager at Coventry Pointe. Worthing currently manages three multi-family communities for Starlight U.S. Multi-Family in Atlanta, Georgia, including Coventry Pointe.
The Fund Portfolio
Following the Acquisition, the Fund has interests in and operates a portfolio comprising 1,193 multi-family suites in three value-add, income producing apartment communities located in Phoenix, Arizona; Atlanta, Georgia; and Austin, Texas.
About Starlight U.S. Multi-Family (No. 1) Value-Add 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 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 (No. 1) Value-Add Fund
For further information: Evan Kirsh, President, Starlight U.S. Multi-Family (No. 1) Value-Add Fund, +1-647-725-0417, [email protected]; Martin Liddell, Chief Financial Officer, Starlight U.S. Multi-Family (No. 1) Value-Add Fund, +1-647-729-2588, [email protected]