/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
TORONTO, June 28, 2017 /CNW/ - Starlight U.S. Multi-Family
(No. 5) Core Fund (TSX.V: STUS.A, STUS.U) (the "Fund")
announced today that it has redeployed the proceeds from the
recently announced disposition of Villages of Towne Lake, together
with the proceeds from the recent sale of Belle Haven Apartments to
acquire Carrick Bend ("Carrick Bend"), a 228 unit, Class
"A", garden-style apartment community constructed in 2014 and
located in Denver, Colorado at
11525 Community Center Drive on a "tax-deferred" basis through a
1031 exchange. The acquisition of Carrick Bend immediately enhances
the geographical diversification of the Fund's portfolio and
creates the opportunity for operating economies of scale and net
operating income ("NOI") growth while lowering the average
vintage age of its apartment communities.
Pursuant to a purchase and sale agreement made and entered into
on June 9, 2017, as amended from time
to time, Carrick Bend Acquisition LLC and Carrick Bend 3
Acquisition LLC, indirect wholly owned subsidiaries of the Fund,
has purchased Carrick Bend unencumbered for the purchase price of
approximately US$54.5 million. In
connection with the acquisition of Carrick Bend, new financing in
the amount of approximately US$34.0
million has been secured for a four year and four month term
with a one year extension available. Subject to certain conditions,
financing is interest only and payable at an annual rate of LIBOR
+2.15%.
Carrick Bend
Carrick Bend is located approximately 15 miles north of downtown
Denver and consists of nine,
three-storey walk up buildings on a nine acre site comprised of
one, two, and three bedroom units. Each apartment unit at Carrick
Bend contains modern interior finishes including gourmet kitchens
with European cabinetry and quartz countertops, stainless steel
under mount sinks, USB ports, full-size washers and dryers, and
private decks or patios with additional storage. Indoor amenities
include a state-of-the-art fitness centre, a clubhouse with an
entertainment kitchen, televisions and Wi-Fi. Exterior features
include a resort-style swimming pool and spa, a fire pit and a
courtyard with barbeque grills as well as 78 detached parking
garages. As of June 22, 2017, Carrick
Bend's occupancy was 96.1%.
Following completion of the acquisition, the Fund retained
Greystar Real Estate Partners ("Greystar"), the largest
third-party multi-residential property management company in
the United States, to property
manage Carrick Bend. Greystar currently manages ten communities for
Starlight U.S. Multi-Family in Atlanta,
Georgia, Denver, Colorado,
Houston, Texas, and Nashville, Tennessee.
The Fund Portfolio
Following the acquisition of Carrick Bend, the Fund now has
interests in and operates a portfolio comprising 6,692 apartment
units in 22 recently constructed, Class "A" stabilized, income
producing apartment communities located in Arizona, Colorado, Florida, Georgia, Nevada, North
Carolina, and Texas.
NON-IFRS Measures
Certain terms used in this news release, including NOI, do not
have a standardized definition prescribed by International
Financial Reporting Standards ("IFRS") and are, therefore,
unlikely to be comparable to similar measures presented by other
reporting issuers. The Fund uses these measures to better
assess the Fund's underlying performance and financial position and
provides these additional measures so that investors may do the
same. Details on non-IFRS measures are set out in the Fund's
management's discussion and analysis for the period ended
March 31, 2017 which is available on
the Fund's profile on SEDAR at www.sedar.com.
Forward-Looking Information
This news release contains statements that may constitute
forward-looking statements within the meaning of Canadian
securities laws and which reflect the Fund's current expectations
regarding future events, including statements concerning the
benefit of owning Carrick Bend and overall improvement of the
financial performance of the Fund resulting from the acquisition of
Carrick Bend. Particularly, statements regarding future results,
performance, achievements, prospects or opportunities for Fund or
the real estate industry are forward-looking statements. In some
cases, forward-looking statements can be identified by terms such
as "may", "might", "will", "could", "should", "would", "occur",
"expect", "plan", "anticipate", "believe", "intend", "seek", "aim",
"estimate", "target", "project", "predict", "forecast",
"potential", "continue", "likely", "schedule", or the negative
thereof or other similar expressions concerning matters that are
not historical facts.
The forward-looking statements in this news release involve
risks and uncertainties, including those set forth in the Fund's
materials filed with the Canadian securities regulatory authorities
from time to time at www.sedar.com. Actual results could differ
materially from those projected herein. Those risks and
uncertainties include, among other things, risks related to:
reliance on the Fund's manager; the expected benefits of the
ownership of Carrick Bend; the property management of Carrick
Bend; the experience of the Fund's officers and directors;
substitutes for residential real estate rental suites; reliance on
property management; competition for real property investments and
tenants; and U.S. market factors.
Information contained in forward-looking statements is based
upon certain material assumptions that were applied in developing
such forward-looking statements including management's perceptions
of historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances, including the following: the
benefits of owning Carrick Bend, the overall improvement of the
financial performance of the Fund's portfolio resulting from the
acquisition of Carrick Bend; the ability of the manager of the Fund
to manage and operate the Fund's properties; the ability of the
property managers selected to manage the Fund's properties; the
population of multi-family real estate market participants;
assumptions about the markets in which the Fund operates; the
global and North American economic environment; foreign currency
exchange rates; and governmental regulations or tax laws. Readers
are cautioned against placing undue reliance on forward-looking
statements. Except as required by applicable Canadian securities
laws, none of the Fund or its manager undertake any obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise, after
the date on which the statements are made or to reflect the
occurrence of unanticipated events.
About Starlight U.S. Multi-Family (No. 5) Core Fund
The Fund is a limited partnership formed under the Limited
Partnerships Act (Ontario) for
the primary purpose of indirectly acquiring, owning and operating a
portfolio of diversified income producing rental properties in the
U.S. multi-family real estate market.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Starlight U.S. Multi-Family (No. 5) Core Fund