VANCOUVER, BC--(Marketwired - December 28, 2016) - Pure Multi-Family REIT LP ("Pure Multi-Family") (TSX VENTURE: RUF.U) (TSX VENTURE: RUF.UN) (TSX VENTURE: RUF.DB.U) (OTCQX: PMULF) announced today that it has entered into an agreement to acquire (the "Acquisition") a multi-family apartment community (the "Property"), located in the Allen sub-market of Dallas, Texas, for a purchase price of US$40,000,000.
The Property was constructed in 2002 and consists of 288 residential units averaging 961 square feet.
Pure Multi-Family intends to fund the Acquisition with proceeds from the previously announced profitable sale of Fairways at Prestonwood (a 1991 built asset that sold on November 17, 2016) and new first mortgage financing in the amount of approximately US$16,500,000. The first mortgage financing is expected to bear a fixed interest rate of 3.27% per annum for a term of 5 years. The purchase price for this fully stabilized asset represents a going-in capitalization rate of 5.3%.
Steve Evans, Pure Multi-Family's CEO, stated, "The Property is located in the highly desirable residential area of Allen, Texas, which is in close proximity for two high-profile master-planned employment hubs in Northern Dallas: Legacy West and CityLine. Legacy West is located ten miles west of the property and will be home to Toyota, JPMorgan Chase, Liberty Mutual and FedEx, while CityLine is home to State Farm and Raytheon and is less than eight miles south of the property. Further, the property improves our average portfolio age and provides solid in-place cash flow with potential to execute our asset improvement strategy to increase unitholder value."
The Acquisition is expected to close in late January, 2017.
Upon the completion of this acquisition and the previously announced acquisition of the Lenox Creekside, Pure Multi-Family's portfolio will consist of 17 multi-family properties comprising an aggregate of 5,793 residential units, situated on 310 acres of land.
About Pure Multi-Family REIT LP
Pure Multi-Family is a Canadian based, publically traded vehicle which offers investors exclusive exposure to attractive, institutional quality U.S. multi-family real estate assets.
Additional information about Pure Multi-Family is available at www.puremultifamily.com or www.sedar.com.
Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include: (i) Pure Multi-Family intends to fund the Acquisition with proceeds from the previously announced profitable sale of Fairways at Prestonwood (a 1991 built asset that closed on November 17, 2016) and new first mortgage financing in the amount of approximately US$16,500,000; (ii) the first mortgage financing is expected to bear a fixed interest rate of 3.27% per annum for a term of 5 years; and (iii) the Acquisition is expected to close in late January, 2017. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by Pure Multi-Family, including: (i) Pure Multi-Family's ability to satisfy the conditions precedent to complete the acquisition of the property; (ii) Pure Multi-Family's ability to obtain mortgage financing on the terms stated herein.
Although Pure Multi-Family believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Pure Multi-Family can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to satisfy the condition precedent to complete the acquisition of the Lenox, the failure to identify, negotiate the purchase of and acquire quality Class A assets, competitive factors in the industries in which Pure Multi-Family operates, prevailing economic conditions, and other factors, many of which are beyond the control of Pure Multi-Family.
The forward-looking statements contained in this news release represent Pure Multi-Family's expectations as of the date hereof, and are subject to change after such date. Pure Multi-Family disclaims any intention or obligation to update or revise any forward-looking statements whether as a result.
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