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TORONTO, March 2, 2015 /CNW/ - Starlight U.S. Multi-Family
Core Fund (TSX.V: SUD.A, SUD.U) (the "Fund") announced today
that it has entered into an agreement and acquired Trevesia
Apartments ("Travesia"), a 396 unit, garden style, Class
"A", apartment complex built in 2009 and located at 3701 Quick Hill
Road, approximately 24 kilometres north of the Austin central business district in
Texas.
Travesia
Bordering the Northwest Austin
and Round Rock-Georgetown sub markets, Travesia is situated
on a 19.4 acre site and comprised of one, two and three bedroom
suites in 18, three storey walk-up buildings in close proximity to
a central clubhouse. Each of Travesia's suites contains
modern interior finishes including granite countertops, wood
cabinets with brushed nickel pulls, stainless steel and black
appliances, track and pendant lighting, full size washer dryer sets
and access to a private patio or balcony. Additional amenities
include a resort-style swimming pool, charcoal grills, a fitness
facility, a business centre with conference room and a dog park. As
of February 23, 2015, Travesia's
occupancy was 92.2%.
In connection with the completion of the acquisition, the Fund
will continue to utilize Alliance Residential Company
("Alliance") for the property management of Travesia.
Alliance is the ninth largest third party, multi-family property
manager in the United States and
is currently managing three communities comprising 930 suites in
Austin and two communities
comprising 670 suites in Houston
for the Fund, Starlight U.S. Multi-Family Core Fund and Starlight
U.S. Multi-Family (No. 3) Core Fund.
Pursuant to a purchase and sale agreement made and entered into
as of February 27, 2015, the Fund
indirectly purchased Travesia for the purchase price of
US$50,600,000. The purchase agreement
contains customary representations and warranties for a transaction
of this nature which survive for a period of one hundred eighty
days following closing and are subject to standard threshold and
dollar liability limitations. The purchase agreement is a material
contract of the Fund.
The purchase price for Travesia is expected to be satisfied by a
combination of US$6,060,000 in cash
with the remainder to be satisfied by the assumption of
US$44,540,000 existing mortgage debt.
Travesia's existing mortgage debt has a nine month term expiring
September 29, 2015 with one three
month extension available. Subject to certain conditions, existing
financing on Travesia is interest only and payable at a blended
rate of approximately 3.83%.
Palm Valley Apartments Refinancing
In order to finance approximately US$6,000,000 of the purchase price for Travesia
and closing costs relating to the acquisition, the Fund has entered
into a new first mortgage loan on Palm Valley Apartments in the
amount of US$31,575,000 (the "Palm
Valley Financing"). The Palm Valley Financing has been secured
for a ten year term, is interest only for the first two years and
payable at 30-day LIBOR + 1.88% or currently 2.01%.
The Fund Portfolio
Following the acquisition of Travesia, the Fund now has
interests in and operates a portfolio comprising 1,527 recently
constructed, Class "A" stabilized, income producing multi-family
real estate suites located in Dallas-Fort
Worth, Houston and
Austin, Texas.
About Starlight U.S. Multi-Family (No. 2) 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.2) Core Fund