Milestone Apartments REIT has closed on the purchase of Osprey Links at Hunter's Creek, a 424-unit, Class A multifamily apartment community located in south Orlando, Florida, for a purchase price of USD50.7 million.
The purchase price represents an estimated initial capitalisation rate of 6.94 per cent and the transaction is expected to be immediately accretive to the REIT.
This acquisition expands the REIT's market presence in Florida and further diversifies the REIT's portfolio.
Prior to the REIT's purchase, the property was owned by a joint venture, of which a minority interest was owned by an affiliate of The Milestone Group.
"Osprey Links is part of our proprietary pipeline of multifamily apartment communities that are held in finite-life partnerships and managed by The Milestone Group, which allows for a seamless transition into the REIT portfolio. This off-market transaction further demonstrates the value creation potential of Milestone's pipeline and our commitment to the accretive growth of the REIT," says Robert Landin, CEO of the REIT. "Our entry into the attractive south Orlando market, which is the largest employment market in metropolitan Orlando, adds to our existing market presence in Florida, and further diversifies our overall portfolio within our target markets."