The Ontario-governed Milestone Apartments Real Estate Investment Trust (Milestone) has agreed to purchase a 280-unit multi-family apartment community in Kansas City, Missouri. The complex, known as The Manor Homes of Arborwalk (Arborwalk), will be purchased for $37.25-million U.S.
Built in 2006, Arborwalk features several amenities, including a clubhouse, business centre, media room, fitness centre, an outdoor pool area and green space. Each unit also has access to a private, attached garage.
The community is located in a submarket of Kansas City, known as Lee’s Summit, which boasts a highly rated school system, major transportation hubs, corporate sector employers, shopping centres, specialty shops and restaurants.
“Arborwalk is an off-market acquisition sourced for the REIT through our strong network of industry relationships. We look forward to entering the Kansas City market and further diversifying the REIT’s portfolio,” says Robert Landin, Milestone CEO. “Kansas City has a population of over two million people, average household income above the national average and favourable employment and demographic trends. The supply and demand characteristics in the Lee’s Summit submarket in particular are very attractive, supporting positive rental rates and stable occupancy. Importantly, we have identified opportunities to increase cash flow at Arborwalk through the implementation of Milestone’s operating efficiencies and value enhancement program.”
The acquisition is expected to close by March 1, 2015.