Milestone Apartments Real Estate Investment Trust announced that it has completed the purchase of Villas at Shadow Creek, a 560-unit multifamily apartment community located in the Pearland submarket of Houston, Texas, for a purchase price of US$74.0 million. This acquisition was previously announced by the REIT on September 15, 2014.

Shadow Creek was built in two phases in 2006 (296 units) and 2007 (264 units) and is currently approximately 95 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.

Shadow Creek has the potential for a value-add program relating to unit interior upgrades. The Property features extensive amenities consistent with Milestone’s established portfolio and is in close proximity to extensive shopping, dining and entertainment options, major transportation corridors and large employment centers, including downtown Houston.

As part of the purchase consideration for Shadow Creek, the REIT has entered into a new ten-year interest only fixed-term mortgage of approximately US$41.2 million at an interest rate of 3.53 per cent maturing in November 2024. 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.