Starlight U.S. Multi-Family Core Fund to acquire apartment complex in Dallas, Texas

/Not for distribution to U.S. newswire services or for dissemination in the United States/

TORONTO, July 22, 2013 /CNW/ - Starlight U.S. Multi-Family Core Fund (TSX.V: UMF.A, UMF.U) (the "Fund") announced today that it has entered into an agreement to acquire Greenhaven ("Greenhaven"), a 216 unit, garden style, Class "A", apartment complex built in 2009 and located at 8690 Virginia Parkway, McKinney, Texas, a rapidly growing area of North Dallas.

Greenhaven

Greenhaven is North Texas' first silver certified LEED for Homes Multi-Family Garden Community. The property consists of 10, two and three storey walk-up buildings on a 11.24 acre site and provides residents with an eco-friendly living environment as well as cost savings through lower utility usage. Greenhaven is predominantly comprised of one and two bedroom suites with a small number of three bedroom units. Each of Greenhaven's suites contains modern features including wood style plank flooring, designer tile backsplash, granite counter tops, nine foot ceilings and full size washer dryer sets.  As of June 30, 2013, Greenhaven's occupancy was 97.7%.

Amenities at Greenhaven include a central clubhouse with a 24-hour state-of-the-art fitness centre, a resident lounge with a large screen television and java bar, an executive business centre and a club room with a billiard table. Outdoor amenities include an expansive resort style pool with surrounding sundeck, landscaped courtyards with barbeque picnic areas and a 2,000 square foot enclosed pet park. Greenhaven also has Wi-Fi high speed internet access throughout the property.

Following completion of the acquisition, the Fund expects to transfer the property management of Greenhaven to the Pinnacle Family of Companies ("Pinnacle"), the fourth largest third party, multi-family property manager in the United States. Pinnacle is currently managing Bridgemoor at Denton located in North Dallas and Villages of Towne Lake located in Houston for the Fund.

Pursuant to a purchase and sale agreement dated as of July 3, 2013, Greenhaven Acquisition LLC, an indirect wholly owned subsidiary of the Fund, has agreed to purchase Greenhaven unencumbered for the purchase price of US$23,500,000. The purchase agreement contains customary representations and warranties for a transaction of this nature. Subject to the satisfaction or waiver of conditions precedent, the purchase of the Property is scheduled to close on or about July 29, 2013. The purchase agreement is a material contract of the Fund.

A first mortgage loan in respect of the purchase of Greenhaven in the amount of approximately US$16.5 million has been secured for a three year term with two one year extensions available. The loan will be interest only for the entire term and will be payable at an annual rate of LIBOR + 2.125%.

The Fund Portfolio

Following completion of the acquisition of Greenhaven, the Fund expects to own and operate a portfolio comprising 956 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.

Forward-Looking Information

This news release contains statements that may constitute forward-looking statements within the meaning of Canadian securities laws and which reflect the Fund's current expectations regarding future events, including statements concerning the acquisition of Greenhaven and the financing of Greenhaven. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Fund or the real estate industry are forward-looking statements. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

The forward-looking statements in this news release involve risks and uncertainties, including those set forth in the Fund's materials filed with the Canadian securities regulatory authorities from time to time at www.sedar.com. Actual results could differ materially from those projected herein. Those risks and uncertainties include, among other things, risks related to: reliance on the Fund's manager; the ability to complete the acquisition of Greenhaven; the terms and availability of financing for Greenhaven; the expected benefits of the ownership of Greenhaven; the experience of the Fund's officers and directors; substitutes for residential real estate rental suites; reliance on property management; competition for real property investments and tenants; and U.S. market factors.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in developing such forward-looking statements including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the following: the ability of the Fund to completed the acquisition of Greenhaven and secure acceptable financing; the ability of the manager of the Fund to manage and operate the properties; the inventory of multi-family real estate properties; the population of multi-family real estate market participants; assumptions about the markets in which the Fund operates; the global and North American economic environment; foreign currency exchange rates; and governmental regulations or tax laws. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, neither the Fund nor its manager undertakes any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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

Evan Kirsh
President, Starlight U.S. Multi-Family Core Fund
647-725-0417
[email protected]