Resource Apartment REIT III Purchases Texas Apartment Community
December 18, 2018 | James Sprow | Blue Vault
On December 11, 2018, Resource Apartment REIT III, Inc. through its operating partnership, entered into an agreement to purchase an apartment community located in Arlington, Texas. The Texas property is an apartment community with 248 units and amenities, including a swimming pool, clubhouse, and a fitness center. The contract purchase price for the property is $25.85 million, excluding closing costs.
The 190,000 square foot property was constructed in 1986 and is currently 94.4 percent leased.
The REIT will make an earnest money deposit of $700,000 and plans to fund the purchase with offering and debt proceeds.
Resource Apartment REIT III invests in U.S. multifamily rental properties, as well as loans secured by multifamily rental properties. The company’s $1 billion offering was declared effective in April 2016 and had raised $71 million in investor equity as of the third quarter 2018, according to Blue Vault. The offering is currently scheduled to close in April 2019. The REIT has four classes of common shares with current distribution yields ranging from 5.74% for Class I shares to 4.50% for Class R, net of fees. At September 30, 2018, the REIT owned five multifamily properties with a total of 971 units.
On August 29, 2018, the Company purchased a multifamily community located in Matthews, North Carolina for $34.8 million. The property contains 212 units encompassing 199,744 rentable square feet. As of September 30, 2018, the property was 96% leased.
On September 14, 2018, the Company purchased a multifamily community, The Park at Kensington, located in Riverview, Florida for $28.7 million. The property contains 204 units in eleven buildings, encompassing 205,471 rentable square feet. As of September 30, 2018, the property was 95% leased.
Resource Apartment REIT III pursues an Opportunistic strategy, purchasing multifamily properties and investing in upgrades to units, resulting in higher rents and occupancies, with the expectation of eventually selling the properties for capital gains. Resource has also sponsored Resource Opportunity REIT (raised $633 million in it offering and owns 31 properties comprising 9,952 units) and Resource Opportunity REIT II (raised $570 million and owns 18 properties comprising 5,519 units) which have pursued similar strategies in the multifamily sector. [data as of September 30, 2018]
For more information on Resource Apartment REIT III, visit www.ResourceAlts.com.
Sources: SEC, Blue Vault, Resource
Learn more about Resource on the Blue Vault Sponsor Focus page
Resource Apartment REIT III Acquires 204-Unit Florida Multifamily Community
