VANCOUVER, BC--(Marketwired - December 15, 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 a multi-family apartment community, known as the Lenox Creekside (the "Lenox"), located in Austin, Texas, for a purchase price of US$40,000,000.
The Lenox was constructed in 2016 and consists of 276 luxury residential units averaging 828 square feet. The Lenox is ideally located less than 10 miles from the largest employment hub in Austin (Downtown Austin) and is conveniently located minutes from Southpark Meadows, one of the largest retail and entertainment centers in Austin. The Lenox is situated on over 13 acres of land with best-in-class resort-style amenities for discerning residents.
Pure Multi-Family intends to fund the purchase of the Lenox with proceeds from the previously announced sale of Livingston Apartments, which closed on November 4, 2016, and new first mortgage financing in the amount of approximately US$20,000,000. The first mortgage financing is expected to bear a fixed interest rate of 3.98% per annum for a term of 10 years. The purchase price represents a stabilized going-in capitalization rate of 5.58%.
Steve Evans, CEO, commented, "We are very excited to add the Lenox to our portfolio. The acquisition marks our entry into the vibrant and growing Austin market. The newly constructed Lenox property will bring the average year of construction of our portfolio to 2006, which reflects our strategy of continuing to high-grade our portfolio. Using the net proceeds from the sale of Livingston Apartments, which resulted in an annualized gain on equity of over 35%, on a tax-deferred basis, by way of the 1031 like-kind exchange program, to acquire a brand-new asset at a 5.58% capitalization rate, we continue to create unitholder value organically through strategic upgrading of our portfolio."
The acquisition of the Lenox is subject to the satisfaction of customary conditions precedent and is expected to close in late January, 2017. Upon completion of the acquisition of the Lenox, Pure Multi-Family's portfolio will consist of 16 multi-family properties comprising an aggregate of 5,505 residential units, situated on 291 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) We are excited to continue to high-grade our portfolio with future acquisitions and demonstrating the resulting growth at Pure Multi-Family. 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 intends to fund the purchase of the Lenox with proceeds from the previously announced sale of Livingston Apartments, which closed on November 4, 2016, and new first mortgage financing in the amount of approximately US$20,000,000; (ii) the first mortgage financing is expected to bear a fixed interest rate of 3.98% per annum for a term of 10 years; and (iii) the acquisition of the Lenox is subject to the satisfaction of customary conditions precedent and 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 Lenox; (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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (as that term is defined in the policies of the TSX Venture Exchange) HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
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