Resource Apartment REIT III Acquires 204-Unit Florida Multifamily Community

September 19, 2018 | James Sprow | Blue Vault

On September 14, 2018, a wholly-owned subsidiary of Resource Apartment REIT III purchased a multifamily community located in Riverview, Florida from an unaffiliated seller. The property is an apartment community with 204 units and amenities, including a swimming pool, clubhouse, a fitness center, and a dog park. The property encompasses 205,471 rentable square feet, was constructed in 1990 and is currently 93% leased.

The contract purchase price of the property was $28.7 million, excluding closing costs. The REIT funded the purchase price with proceeds from its ongoing public offering and proceeds from a seven-year secured mortgage loan with CBRE Capital Markets, Inc. The loan bears interest at a fixed rate of 4.36%.

The REIT believes that the property is suitable for its intended purpose and adequately insured; however, the REIT intends to make certain renovations to the unit interiors of the property.

This most recent acquisition is consistent with the investment strategy of Resource Apartment REIT III. For example, on July 31, 2017, the REIT acquired Bay Club Apartments in Jacksonville, Florida for $28.3 million. Following the acquisition, the REIT deployed approximately $1.6 million to renovate about 14 percent of the interiors of the property. The strategic renovations resulted in a rent premium of 16.6% over in-place rents at the time of acquisition. 

Sources:  SEC, Resource, Blue Vault

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