/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, April 1, 2014 /CNW/ - Starlight U.S. Multi-Family
Core Fund (TSX.V: UMF.A, UMF.U) (the "Fund") and Starlight
U.S. Multi-Family (No. 2) Core Fund (TSX.V: SUD.A, SUD.U) ("Fund
No. 2") announced today that they have acquired Soho Parkway
Apartments ("Soho Parkway"), a 379 unit, garden style, Class
"A", apartment complex built in 2008 and located at 6653 McKinney
Ranch Parkway in McKinney, Texas,
a rapidly growing area of North
Dallas.
Soho Parkway consists of 16, three storey walk-up buildings on a
15.04 acre site and is comprised of one, two and three bedroom
units. The apartment units are of an above average size, well laid
out and contain modern features including laminate wood flooring,
granite counter tops, cultured marble vanities, brushed nickel
fixtures and full size washer and dryer sets. Amenities at Soho
Parkway include a central clubhouse with a 24-hour state-of-the-art
fitness centre, a resident lounge with a large screen television
and an executive business centre. Outdoor amenities include a
resort style pool with barbeque picnic areas. Soho Parkway also has
Wi-Fi high speed internet access throughout the property. Soho
Parkway's current occupancy is approximately 93.9%.
In connection with the acquisition, the Fund acquired a 25%
interest in Soho Parkway for US$10,325,000 and Fund No. 2 acquire a 75%
interest in Soho Parkway for US$30,975,000. In order to satisfy its cash
portion of the purchase price, the Fund secured a supplementary
loan on the Falls of Copper Lake
for US$4,500,000 that will mature on
April 1, 2017. The interest rate
payable on the supplementary loan is 3.92%. Fund No. 2
satisfied its cash portion of the purchase price with the remaining
proceeds from its initial public offering completed on November 15, 2013 and is now fully deployed.
A first mortgage loan in respect of the purchase of Soho
Apartments in the amount of US$28,300,000 has been secured for a three year
term with two one year extensions available. The loan is interest
only for the entire term and is payable at an annual rate of LIBOR
+ 2.00%. Each of the Fund and Fund No. 2 has assumed responsibility
for the liabilities of Soho Parkway on a pro-rata ownership
basis. All decision making in respect of Soho Parkway,
including day-to-day and material decisions, will be shared by the
Fund and Fund No. 2 equally through their established governance
practices.
Following completion of the acquisition, property management at
Soho Parkway was transferred to the Pinnacle Family of Companies
("Pinnacle"), the fourth largest third party, multi-family
property manager in the United
States. Pinnacle also manages Bridgemoor at Denton and Greenhaven Apartments located in
North Dallas and Villages of Towne
Lake located in Houston for the
Fund.
The Fund now owns and operates a portfolio comprising interests
in 1,747 recently constructed, Class "A" stabilized, income
producing multi-family real estate suites located in Dallas-Fort Worth and Houston, Texas, and Fund No. 2 now owns and
operates a portfolio comprising interests in 1,131 recently
constructed, Class "A" stabilized, income producing multi-family
real estate suites located in Austin, Dallas-Fort
Worth and Houston,
Texas.
About Starlight U.S. Multi-Family Core Fund and Starlight
U.S. Multi-Family (No. 2) Core Fund
Each of the Fund and Fund No. 2 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 Core Fund