Milestone Apartments Real Estate Investment Trust announced that it has completed the purchase of Estates at Vista (formerly 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 $45.0 million.
The purchase of Vista Ridge was funded through a combination of: (i) a new six-year interest only fixed-rate mortgage of approximately US$24.9 million at an interest rate of 3.38 per cent maturing in October 2021; (ii) the issuance of 265,749 class B limited partnership units of Milestone Multifamily Investors LP at the previously agreed upon price of US $11.50 per class B unit (representing a consideration of approximately US$3.1 million); and (iii) the balance of the purchase was funded with cash using proceeds received from the REIT’s recent disposition of Villas at Cave Creek (“Villas”), described below.
Villas at Cave Creek disposition
As part of Milestone’s overall business strategy to continuously high-grade the REIT’s portfolio to optimize cash flow performance and build long-term Unitholder value through strategic acquisitions and dispositions, the REIT also announced the recent disposition of Villas, a 696-unit multifamily apartment community in Phoenix, Arizona, that was built in 1986, for gross proceeds of US $43.2 million. The in-place cap rate for Villas was 5.9 per cent and the floating rate debt associated with this property was US $17.8 million with an interest rate of approximately 1.73 per cent