Pure Multi-Family REIT LP Announces US$23.0 Million Property Acquisition

Pure Multi-Family REIT LP announced that it has entered into a conditional agreement to acquire a multi-family apartment community located in suburban Houston, Texas (the Property), for a purchase price of US$23,000,000.
The Property, known as Alexan Deer Park, consists of 216 residential units located in 10 buildings on a 12.2 acre site.  The property is located in Deer Park, Texas, which is located 21 miles southeast of downtown Houston and has close access to Sam Houston Tollway/Beltway 8, which is Houston's outer loop road providing connections to major highways in the city.
The Class A property was developed in 2000 by its current owner and has been very well maintained.  It is one of only three Class A communities in its submarket and has averaged a high occupancy level since its initial lease-up.  In the past year, the apartment units have been upgraded with laminate granite countertops, wood plank flooring (first floor units), faux wood blinds, nickel hardware and upgraded lighting.  The property is located within five miles of three of the largest employers in the Port of Houston.
The purchase price of US$23,000,000 represents a going-in capitalization rate of 6.07%.  The acquisition of the Property is subject to the satisfaction of customary conditions precedent and is expected to close in late June, 2013.
Pure Multi intends to fund a portion of the purchase price of the Property with new first mortgage financing in the estimated amount of US$17,100,000 at an estimated interest rate of approximately 3.90% per annum for a term of 10 years.  The balance of the purchase price will be obtained from the proceeds of Pure Multi's bought deal financing which was announced on April 18, 2013.
Stephen Evans, CEO, said "We are pleased to be adding Alexan at Deer Park to our portfolio.  The property is of a very high quality, with recent upgrades allowing its owner to attract premium rentals.  Pure Multi's acquisition strategy is to acquire newer, higher quality multi-family properties in the major markets of the US, with a focus on the US Sunbelt.  Our goal is to acquire properties in clusters which will ensure regional economies of scale and geographic diversification within our portfolio.  Having built a seven property portfolio consisting of 2,064 apartments in Dallas-Fort Worth Metroplex, we are now expanding into the Houston market.  Houston is a major economic centre featuring strong population and employment growth and demand for multi-family real estate."
Consistent with Pure Multi's past practices and in the normal course, Pure Multi engages in ongoing discussions with respect to possible acquisitions.  There can be no assurance that any of these discussions will lead to a conditional purchase agreement or will be completed.  Pure Multi continues to actively pursue acquisition and investment opportunities.

on April 30, 2013