Inland Residential Buys Montgomery, Alabama Multifamily Property for $36.6 Million
August 7, 2017 | James Sprow | Blue Vault
Inland Residential Properties Trust Inc., a publicly registered non-traded real estate investment trust, purchased Verandas at Mitylene, a 332-unit multifamily property in Montgomery, Alabama for $36.6 million, plus closing costs, according to an August 2nd filing with the Securities and Exchange Commission.
Built in 2007, Verandas at Mitylene is a 377,000-square-foot property comprised of one-, two- and three-bedroom units that each include stainless steel appliances, a washer and dryer, patio or balcony, walk-in closet, and fireplace. Property amenities include a swimming pool and hot tub, car care center, tanning bed, and a 24-hour fitness center. As of June 30, 2017, the property was 90.1% occupied, with approximately 302 residential units leased. The REIT does not intend to make significant renovations or improvements in the foreseeable future.
According to the filing, the property had an average effective base rent in 2016 of $10,880 per unit. As of December 31, 2016, it had an occupancy rate of 89.5%, down slightly from the December 31, 2015 rate of 90.4%. The property has 146 leases expiring in 2017 and 156 leases expiring in 2018.
The acquisition was funded with offering proceeds and a $21.9 million first mortgage loan from Berkadia Commercial Mortgage LLC that bears interest at a fixed rate of 3.88 percent per year and matures on August 1, 2027. The loan requires monthly payments of interest only until the maturity date, on which date the outstanding principal balance of the loan plus all accrued and unpaid interest will be due.
Inland Residential Properties Trust was declared effective in February 2015 and invests in multifamily properties located primarily in the top 100 U.S. metropolitan statistical areas. The company owns three multifamily properties totaling $104.8 million and has raised approximately $44.4 million in investor equity as of July 31, 2017. The offering includes Class A shares, Class T shares and Class T-3 shares.
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