Milestone Apartments Real Estate Investment Trust announced that it has entered into an agreement to purchase Broadstone Vista Ridge, a 372-unit, Class A multifamily apartment community located in the Lewisville submarket of Dallas, Texas, for a purchase price of US $45.1 million, representing an estimated year one capitalization rate of 6.72 per cent. The acquisition is expected to be accretive to the REIT.
“The acquisition of Broadstone represents another off-market opportunity for Milestone and will further expand the REIT’s presence in the Dallas-Fort Worth market, one of the fastest growing markets in the U.S.,” said Robert Landin, CEO of Milestone.
Built in 2006, Broadstone is currently 95 per cent occupied, with average monthly rents of approximately US $1,050. 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.
Broadstone includes one, two and three-bedroom units that feature spacious living areas, nine-foot ceilings, modern design, and gourmet kitchens. Amenities include a fitness center, a resort-style swimming pool with an outdoor fireplace, multimedia center, and a cyber café.
The property is centrally located within the Dallas-Fort Worth metroplex and has convenient access to major transportation corridors, including the Sam Rayburn Tollway / State Highway 121, I-35, and the President George Bush Turnpike. Several large employment centres are located in close proximity to the property, including the Dallas-Fort Worth International Airport, Las Colinas Urban Center and the Legacy Business Park, the site of corporate campuses for Toyota Motor Corporation’s new North American headquarters, Liberty Mutual Insurance and FedEx Corporation.
The 1.4 million square foot Vista Ridge Mall is located 1.5 miles from the property and features several large national retailers, more than 130 specialty stores, as well as several dining and entertainment options.
The acquisition, which is subject to customary closing conditions, is expected to close by September 30, 2015. The REIT will disclose the final details of the purchase, including financing terms, following closing of the acquisition.