MINNEAPOLIS, Sept. 2,
2021 /PRNewswire/ -- Centerspace (NYSE: CSR)
announced today that it has closed on its strategic portfolio
acquisition in Minneapolis and
St. Cloud, Minnesota for an
aggregate purchase price of $323.8
million. The portfolio is comprised of 14 communities in
Minneapolis, Minnesota and three
communities in St. Cloud,
Minnesota. The acquisition will add 2,696 apartment homes to
the Centerspace portfolio.
In connection with this transaction, the Company issued
$181.4 million of Convertible
Preferred Operating Partnership units. The Convertible Preferred
Operating Partnership units pay a 3.875% dividend rate and are
convertible into common units at an exchange rate of 1.2048 common
units per Convertible Preferred Operating Partnership unit
representing a conversion price of $83.00 per unit. The acquired assets are subject
to $126.5 million in mortgage
liabilities of which $20.0 million
was assumed at a rate of 4.31% with the remaining $106.5 million refinanced through a $198.9 million Fannie Mae Credit Facility. The
Fannie Mae Credit Facility includes tranches in 7, 10 and 12-year
increments with a weighted average interest rate of 2.78%. The
additional proceeds from the refinancing will be used by the
Company to reduce the outstanding balance under its bank credit
facility. As part of the transaction consideration, the Company
will provide tax protection to the holders of the Convertible
Preferred Operating Partnership units for seven years.
Additionally, the Company plans to invest approximately
$40 million to reposition the
communities over the next 24-36 months.
"We are very excited to close this transaction and add 2,696
homes and 118 new team members to our portfolio. This acquisition
allows us to double our footprint in Minneapolis, a market where we have seen
consistently strong performance, while increasing our scale of
operations," said Mark O. Decker
Jr., President and CEO. "We are thankful to all the team
members who have gotten us to closing and we are excited to welcome
these communities and team members to our platform."
About Centerspace
Centerspace is an owner and operator of apartment communities
committed to providing great homes by focusing on integrity and
serving others. Founded in 1970, the company currently owns 79
apartment communities consisting of 14,275 homes located in
Colorado, Minnesota, Montana, Nebraska, North
Dakota, and South Dakota.
Centerspace was named a Top Workplace for 2021 by the
Minneapolis Star Tribune . For more information,
please visit www.centerspacehomes.com.
If you would like more information about this topic, please
contact Emily Miller, Investor
Relations, at (701) 837-7104 or IR@centerspacehomes.com.
Contact Information
Emily
Miller, Investor Relations
Phone : (701) 837-7104
E-mail : IR@centerspacehomes.com
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SOURCE Centerspace