All amounts are in US Dollars unless otherwise
stated.
TORONTO, Jan. 31, 2020 /CNW/ - Firm Capital American
Realty Partners Trust (the "Trust"), (TSXV: FCA.U), (TSXV:
FCA.UN) is pleased to announce that it has closed a $28 million joint venture located in Houston, Texas as previously announced on
January 23, 2020.
The Trust closed a joint venture with an unrelated third party
to acquire the Woodglen Village Apartments ("Woodglen" or
the "Property"), a 250-unit, multi-family residential
building. The joint venture invested approximately $28 million (including transaction costs and
capital expenditures), representing a 6.3% going-in capitalization
rate based on the purchase price of $24.2
million or approximately $96,700 per unit ($99 per square foot).
The Property is financed, in part, by a new first mortgage for
$22.1 million with a 4.5% interest
rate. The terms of the financing also include a two-year
interest-only period, three-year term, with two one-year extension
options. The remaining capital requirement of approximately
$6.0 million was funded through
approximately $2.5 million of common
equity held 50% by the Trust and 50% by the unrelated third party,
and the excess equity of approximately $3.5
million was funded as preferred equity at an 9% rate, also
held by the Trust. The unrelated third party is an experienced
New York City based real estate
owner and operator who is also a 50% partner with the Trust on its
existing 235 apartment unit joint venture also located in
Houston, Texas.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS TRUST
Firm
Capital American Realty Partners Trust is a U.S. focused real
estate investment entity that pursues real estate and debt
investments through the following platforms:
- Income Producing Real Estate Investments: Acquiring
income producing real estate assets in major cities across
the United States. Acquisitions
are completed solely by the Trust or in joint-venture partnership
with local industry expert partners who retain property management
responsibilities; and
- Mortgage Debt Investments: Real estate debt and equity
lending platform in major cities across the United States, focused on providing all
forms of bridge mortgage loans and joint venture capital.
FORWARD LOOKING INFORMATION
Certain information in
this news release constitutes forward-looking statements under
applicable securities law. Any statements that are contained in
this news release that are not statements of historical fact may be
deemed to be forward-looking statements. Forward-looking statements
are often identified by terms such as "may", "should",
"anticipate", "expect", "intend" and similar expressions.
Forward-looking statements in this press release include statements
relating to the timing of trading of the Trust's securities.
Forward-looking statements necessarily involve known and unknown
risks, including, without limitation, risks associated with general
economic conditions; adverse factors affecting the U.S. real estate
market generally or those specific markets in which the Trust holds
properties; volatility of real estate prices; inability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favourable terms;
industry and government regulation; changes in legislation, income
tax and regulatory matters; the ability of the Trust to implement
its business strategies; competition; currency and interest rate
fluctuations and other risks, including those described in the
Trust's public disclosure documents on SEDAR at www.SEDAR.com.
Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. Additional information about the Trust is
available at www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital American Realty Partners Trust