Milestone acquires apartments in Denver

Monday, October 27, 2014

Milestone Apartments Real Estate Investment Trust announced it has completed the purchase of The Village at Legacy Ridge, a 221-unit multifamily apartment community located in the Westminster submarket of Denver, Colorado, for a purchase price of US$40.5 million. This acquisition was previously announced by the REIT on October 6, 2014.

Legacy Ridge was built in 2001 and is currently approximately 97 per cent occupied, with average monthly rents of approximately US$1,200 per unit. The Property’s average in-place rents are higher than the REIT’s portfolio average in part due to a higher proportion of two and three-bedroom apartment suites. The Property features extensive amenities consistent with Milestone’s established portfolio and is in close proximity to major transportation corridors and large employment centers, including downtown Denver and Boulder.

As part of the purchase consideration for Legacy Ridge, the REIT has assumed a fixed rate mortgage of approximately US$23.6 million at an interest rate of 3% and fully amortized on a 35 year schedule maturing in October 2047. These financing terms further decrease the REIT’s weighted average interest rate and extend the maturity of its mortgage note obligations. The balance of the purchase price will be funded using proceeds raised from the REIT’s recently completed C$115.1 million bought deal equity offering.