GREAT NECK, NY--(Marketwired - Sep 6, 2016) - BRT REALTY TRUST (NYSE: BRT) today announced that on September 1, 2016, it acquired a second multi-family property in the city of Southaven, Mississippi, a suburb of Memphis, Tennessee, for $38.2 million. The Company also sold for a significant gain a multi-family property for $30.4 million in Kansas after owning it for 2 1/2 years.
On September 1, 2016, BRT, through a joint venture in which it has a 60% interest, acquired Civic Center II, a 384 unit multi-family property located in Southaven, Mississippi, for $38.2 million, inclusive of $30.6 million of mortgage debt obtained in connection with the acquisition. The mortgage matures in October 2026, bears an annual interest rate of 3.73% and is interest only until October 2021.
On September 1, 2016, BRT, through a consolidated joint venture, sold Sundance, a 496 unit multi-family property located in Wichita, Kansas for $30.4 million. BRT estimates that in the fourth quarter of fiscal 2016 it will recognize, after giving effect to a $1.9 million charge associated with the prepayment of the mortgage debt, an $8.6 million gain on the sale and that BRT's share of such gain will be approximately $5.3 million.
Jeffrey A. Gould, President and Chief Executive Officer commented, "We continue to actively manage our multi-family portfolio to ensure that the Company is leveraging its market presence and asset management platform to maximize growth. As such, we added Civic Center II in Southaven, Mississippi which is adjacent to our recently acquired Civic Center I asset, thus gaining a significant presence in a highly desirable area with a strong retail presence. We coupled this acquisition with the disposition of a property that we believe has limited growth potential. By selling the Kansas property now and reinvesting the proceeds in stronger properties, we can enhance long-term cash flow," Mr. Gould continued, "These transactions speak to the strength of our joint venture relationships as both the transactions were completed with the same partner."
Forward Looking Statements:
Certain information contained herein is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. BRT intends such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions or variations thereof. Forward looking statements, including statements with respect to BRT's multi-family acquisition and disposition activities, involve known and unknown risks, uncertainties and other factors, which, in some cases, are beyond BRT's control and could materially affect actual results, performance or achievements. Investors are cautioned not to place undue reliance on any forward-looking statements and to carefully review the section entitled "Item 1A. - Risk Factors" in BRT's Annual Report on Form 10-K for the year ended September 30, 2015 and in the Quarterly Reports on Form 10-Q filed thereafter.
About BRT Realty Trust:
BRT is a real estate investment trust that either directly, or through joint ventures, owns, operates, and develops multi-family properties and owns and operates other real estate assets. Additional financial and descriptive information on BRT, its operations and its portfolio, is available at BRT's website at: www.BRTRealty.com. Interested parties are encouraged to review the Form 10-K for the year ended September 30, 2015 filed with the Securities and Exchange Commission for additional information.