/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
TORONTO, Aug. 1, 2017 /CNW/ - Starlight U.S. Multi-Family
(No. 5) Core Fund (TSX.V: STUS.A, STUS.U) (the "Fund")
announced today that it has acquired Copperfield Apartments
("Copperfield"), a 288 suite, Class "A", garden-style,
apartment community constructed in 2015 and located in Nashville, TN at 670 Ken Pilkerton Drive on an
accelerated basis in order to ensure that the capital received from
the Fund's recent refinancing of certain properties was accretively
deployed for the benefit of unitholders. Copperfield is the Fund's
first acquisition in the fast growing Nashville market and immediately enhances the
geographical diversification of the Fund's portfolio while
improving the average vintage of its apartment communities.
Pursuant to a purchase and sale agreement made and entered into
on July 24, 2017, as amended from
time to time, the Fund indirectly purchased Copperfield
unencumbered for the purchase price of approximately US$48.0 million. In connection with the
acquisition of Copperfield, financing in the amount of
approximately US$32.3 million has
been secured for a three year term with two, one year extensions
available. Subject to certain conditions, the financing is interest
only and will be payable at an annual rate of LIBOR + 2.00%.
Copperfield is situated just north-east of the intersection of
Highway 24 and Highway 840 in the Smyrna submarket of Nashville, approximately 30 minutes south-east
of downtown Nashville, and
consists of 12, three storey buildings. Interiors finishes feature
gourmet kitchens with granite countertops, stainless steel
appliances, pendant lighting, kitchen islands or breakfast bars and
spacious 42" espresso cabinetry. Suites also feature wood
plank flooring, in-suite washers and dryers, garden tubs with tile
surround, wood blinds, private balconies and additional storage.
Outdoor amenities include a resort-style saltwater swimming pool,
an entertainment area with a fire pit and outdoor kitchen, a dog
park, a playground and an electric vehicle charging station.
Indoor amenities include a 24/7 fitness gym, a children's play
room, a luxurious modern clubhouse with a high vaulted ceiling,
free Wi-Fi, a kitchen, billiards table, flat screen television and
a business centre. The property also has 80 detached garage
units. As of July 20, 2017,
Copperfield's occupancy was 93.1%.
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 Copperfield. Greystar currently manages 11 communities for
Starlight U.S. Multi-Family in Atlanta,
Georgia, Charlotte and
Raleigh, North Carolina,
Denver, Colorado, Houston, Texas, and Nashville, Tennessee.
"The acquisition of Copperfield represents the Fund's first
purchase in the high growth Nashville market and highlights the continued
execution of the Fund's business plan to enhance its geographical
diversification and improve its average portfolio vintage,"
commented Evan Kirsh, the Fund's
President.
The Fund Portfolio
Following the acquisition of Copperfield, the Fund now has
interests in and operates a portfolio comprising 6,980 suites in 23
recently constructed, Class "A", stabilized, income producing
apartment communities located in Arizona, Colorado, Florida, Georgia, Nevada, North
Carolina, Tennessee and
Texas.
Forward-Looking Information and Securities Law
The acquisition of Copperfield constitutes a "related party
transaction" under Multilateral Instrument 61-101 – Protection
of Minority Security Holders in Special Transactions ("MI
61-101"). The Fund relied on the exemptions set out in
subsection 5.5(b) and paragraph 5.7(1)(a) of MI 61-101 from the
formal valuation and minority approval requirements of MI 61-101.
Copperfield's acquisition was approved by the Fund's Board of
Directors (other than Daniel
Drimmer, who declared his interest in the acquisition of
Copperfield and was recused from voting) in accordance with the
Fund's amended and restated limited partnership agreement dated as
of October 12, 2016.
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
overall improvement of the financial performance of the Fund
resulting from the acquisition of Copperfield. 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 Copperfield; 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
overall improvement of the financial performance of the Fund's
portfolio resulting from the acquisition of Copperfield; 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