Milestone Apartments REIT Acquires Pearland’s Villas at Shadow Creek
- Sep 20, 2014
Milestone Apartments Real Estate Investment Trust just increased its Houston footprint by entering into an agreement of purchase and sale for Villas at Shadow Creek, a 560-unit multifamily community located in the Pearland submarket.
The acquisition, which is expected to close by the 30th of October, was facilitated by the REIT’s negotiations for a new fixed-term mortgage of approximately $41.2 million. The rest of the funding will be obtained from the company’s revolving line of credit. While the final financing terms remain undisclosed, the deal will go through at approximately $74 million, which represents an estimated year-one capitalization rate of 6.52 percent.
Situated in the Shadow Creek Ranch Master Planned Community, the multifamily asset was constructed in two phases, in 2006 and 2007. It has an occupancy rate of 95 percent, and its average monthly rent is around $1,200 per unit. The apartments come with one-, two- and three bedroom layouts, and community amenities include a business center, a strength training facility with a yoga and meditation room, a billiards room and wading pools.
“We look forward to adding this property to our existing portfolio of multifamily apartment communities in the greater Houston area. There is potential to further enhance the value of this asset through the implementation of Milestone’s operating efficiencies and unit enhancement program,” said Robert Landin, CEO of Milestone. “Shadow Creek is being acquired through a direct negotiation with the seller. Our strong networks of industry relationships continue to provide us with attractive off-market investment opportunities.”
Image Courtesy of Villas At Shadow Creek’s Official Website