Pure Multi-Family REIT has closed on its acquisition of Walker Commons, a multi-family apartment community in Houston, Texas for a purchase price of USD43,800,000.
The closing occurred on 27 June 2014.
Walker Commons was constructed in 2008 and consists of 352 residential units located in 12 two- and three-storey buildings with units averaging over 927 square feet. The 18.69 acre property is located in League City, a southeastern suburb of Houston, and includes a clubhouse, athletic centre, resort-style swimming pool, outdoor living room with a fireplace and a pool side cabana with grills for outdoor entertaining.
Houston has been ranked as the second highest employment growth market and highest population growth market in America.
Pure Multi funded a portion of the purchase price of Walker Commons with cash from Pure Multi's private placement financing which closed on 21 May, 2014, and a new first mortgage financing, which bears an interest rate of 3.11 per cent per annum for a term of five years. The purchase price represents an appraised capitalisation rate of 6.0 per cent.
Steve Evans, chief executive of Pure Multi, is a director of the vendor entity. Walker Commons was acquired indirectly by Pure Multi from a wholly-owned subsidiary of Sunstone US Opportunity (No2) Realty Trust. Pure Multi and Sunstone are non-arm's length parties in accordance with the policies of the TSX Venture Exchange by virtue of having certain directors and officers in common.
Evans says: "The addition of Walker Commons to our Houston cluster further establishes Pure Multi's footprint in America's fastest growing city. We continue to execute on our growth strategy with institutional quality assets like Walker Commons and we continue to leverage our experience and long-standing relationships to access phenomenal interest rates so we can continue to produce the best results for our investors."