Resource RE Opportunity REIT II Buys 152-Unit Apartment Community in Dallas
- Jun 09, 2014
Four months after commencing its initial public offering of up to $1 billion in common stock, Resource Real Estate Opportunity REIT II Inc. has made its first acquisition. The company, which is focusing its efforts on the acquisition and reinvention of underperforming multi-family rental assets, has grabbed a 152-unit apartment property in the coveted Platinum Corridor neighborhood of Dallas.
Sited on six acres near the Dallas North Tollway, the 130,000-square-foot apartment property first swung open its doors to residents in 1980. There haven’t been any issues leasing up the community in the recent past; the property is presently 99 percent occupied and has maintained an occupancy in the mid- to upper 90s over the last few years. However, upside potential exists, and Opportunity REIT II plans to capitalize on it.
As Kevin Finkel, president & COO of Opportunity REIT II noted in a prepared statement, “The property is situated in a market that we believe will continue to experience employment growth. Through our anticipated capital improvements, we believe this property may experience higher resident demand and be able to take advantage of increased rents.”
Opportunity REIT II has not disclosed the specifics regarding the amount it plans to invest in the renovations. The company relied on proceeds from its ongoing IPO, a mortgage loan and a bridge loan to fund the acquisition of the asset.
The shopping is just getting started. The REIT will also invest in distressed real estate owned by financial institutions, as well as performing and non-performing real estate-related loans.