Milestone Apartments Real Estate Investment Trust announced that it has entered into an agreement to purchase Hawthorne at the Trail, a 252-unit, Class A multifamily apartment community located in the Union County submarket of Southeastern Charlotte, North Carolina, for a purchase price of US$32.2 million, representing an estimated year one capitalization rate of 6.40 per cent. The acquisition is expected to be accretive to the REIT.
“Charlotte, North Carolina represents a new market for Milestone and furthers our strategy of expanding and diversifying the REIT’s portfolio. Upon completion of this acquisition, the REIT will have a presence in nine States and 14 high-growth U.S. markets. The population and employment growth in Charlotte is expected to exceed that of the U.S. average over the next five years, and fits our target profile as a major U.S. metropolitan market showing favourable demographic and employment trends,” said Robert Landin, CEO of Milestone.”
Built in 2003, Hawthorne at the Trail is currently 95 per cent occupied, with average monthly rents of approximately US$950. The property’s average in-place rents are higher than the REIT’s portfolio average in part due to a higher percentage of two and three-bedroom apartment suites. Hawthorne at the Trail comprises spacious 1, 2 and 3-bedroom units that feature open floor plans, nine-foot ceilings, modern design, and quality construction. Amenities include a 24-hour fitness center, cyber café, swimming pool, covered picnic pavilion, scenic walking trail, playground, and dog park. Situated near Highway 74 (Independence Blvd.) and I-485, an important local and regional travel corridor, the Property offers convenient access to uptown Charlotte and other employment centers, including Matthews, Ballantyne, South Park and University City. The Property is located in close proximity to several large employers including Harris Teeter and Carolinas Medical Center.
The acquisition, which is subject to customary closing conditions, is expected to close by July 31, 2015. The REIT will disclose the final details of the purchase, including financing terms, following closing of the acquisition.
