/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Sept. 16, 2013 /CNW/ - Starlight U.S. Multi-Family Core Fund (TSX.V: UMF.A, UMF.U) (the "Fund") announced today that it has acquired a 35% interest in Alexan Eagle Creek ("Eagle Creek"), a 412 unit, garden style, Class "A", apartment complex built in 2009 and located at 9702 N. Sam Houston Parkway East, Humble, Texas, a rapidly growing area of North Houston, for a purchase price of approximately US$14.35 million. The remaining 65% interest in the property was indirectly acquired by Daniel Drimmer, a Director and the Chief Executive Officer of Starlight U.S. Multi-Family Core GP, Inc., the Fund's general partner, and the principal of the Fund's manager, Starlight Investments Ltd. All decision making in respect of Eagle Creek, including day- to-day and material decisions, will be made exclusively by the Fund through its established governance practices.
In connection with the acquisition of Eagle Creek, new financing in the amount of approximately US$33.5 million has been secured for a three year term with two one year extensions available. Subject to certain conditions, financing will be interest only and will be payable at a blended rate of 3.98%. The Fund and Mr. Drimmer have each assumed responsibility for the liabilities of Eagle Creek on a pro-rata ownership basis.
Eagle Creek consists of 19, three storey walk-up buildings on a 22.13 acre site and is comprised of one and two bedroom suites. Each of Eagle Creek's suites contains modern features including crown moulding and nine foot ceilings. Amenities at the property include a central clubhouse containing a media room with a flat screen television, a business centre with Wi-Fi access, a fitness centre (including free weights, resistance machines, circuit training and cardio equipment), a demonstration cooking area, an internet café, billiard and shuffle board entertainment areas and two outdoor swimming pools that feature a covered barbeque area, patio seating and a covered patio with a fireplace. As of August 26, 2013, Eagle Creek's occupancy was 93.2%.
On completion of the acquisition, the Fund changed the name of the property to 'Falls at Eagle Creek'. Greystar Real Estate Partners ("Greystar"), the third largest third-party, multi-family property manager in the United States and the largest multi-family property manager in the Houston area, will continue to manage Eagle Creek. Greystar is also currently managing the Falls at Copper Lake in Houston for the Fund.
Following completion of the acquisition of Eagle Creek, the Fund now operates and owns interests in a portfolio comprising 1,368 recently constructed, Class "A" stabilized, income producing multi-family real estate suites located in Dallas-Fort Worth and Houston, Texas.
About Starlight U.S. Multi-Family 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 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 Core Fund
For further information:
President, Starlight U.S. Multi-Family Core Fund