MINNEAPOLIS, Jan. 5, 2022 /PRNewswire/ -- Centerspace (NYSE:
CSR) announced that it closed on the acquisition of a portfolio of
three communities in Minneapolis
and one community in Denver for an
aggregate purchase price of $131.1
million. The acquisitions were financed through the
assumption of $41.6 million of debt
and the issuance of 209,156 common operating partnership units. The
balance was funded with cash on hand. The Company also announced
that it raised $70.3 million through
the issuance of 721,141 common shares under its ATM program in the
fourth quarter of 2021.
In the Minneapolis market,
Centerspace purchased 191 homes at the 2015-built Martin Blu in Eden
Prairie for a purchase price of $48.0
million. The Minneapolis
portfolio also included two smaller communities in Minneapolis: Zest, built in 2016, and
Elements, built in 2015. Combined Zest and Elements are 76 homes,
and the purchase price was $20.1
million. These three communities will add 267 homes to
Centerspace's Minneapolis
portfolio, where the company now provides 5,177 homes. The acquired
communities are subject to $41.6
million in mortgage liabilities, which were assumed at
a weighted average interest rate of 4.13% and a maturity of 8.7
years. As part of the transaction consideration the Company will
provide tax protection to the holders of the common operating
partnership units for five years. In Denver, Centerspace
acquired Civic Lofts located in the Golden Triangle neighborhood
for an aggregate purchase price of $63.0
million. Constructed in 2019, Civic Lofts consists of 176
homes and features 1,600 square feet of street-level retail.
Centerspace entered the Denver
market in 2017 and now provides 1,889 homes in six communities
there.
"These communities are great additions to our portfolio -
all well located in great sub-markets, newer and provide a
wonderful place to live in our key markets of Minneapolis and Denver. We're pleased that we were able to
match-fund these investments with our ATM issuances," said
Mark O. Decker, Jr., Centerspace's
President and CEO. "In 2022 we will focus on the strategic
priorities of enhancing our portfolio quality and resident
experience, and growing distributable cash flow and core FFO while
providing great homes for our residents, our team, and our
investors."
About Centerspace
Centerspace is an owner and operator of apartment
communities committed to providing great homes by focusing on
integrity and serving others. Founded in 1970, the company
currently owns 83 apartment communities consisting of 14,718 homes
located in Colorado, Minnesota, Montana, Nebraska, North
Dakota, and South Dakota.
Centerspace was named a Top Workplace for 2021 by the
Minneapolis Star Tribune. For more information, please visit
www.centerspacehomes.com.
Contact Information
Emily
Miller, Investor Relations
Phone : (701) 837-7104
E-mail : IR@centerspacehomes.com
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SOURCE Centerspace