Firm Capital American Realty Partners Trust Announces the Closing of a 50% Interest in a 235 Unit, Multi-Family Residential B...
September 16 2020 - 4:01PM
Firm Capital American Realty Partners Trust (the
“
Trust”), (TSXV: FCA.U), (TSXV: FCA) is
pleased to announce it has entered into a joint venture
agreement with an unrelated third party to acquire
a $37.5 million multi-family residential property
located in the Washington D.C. Metro Area.
North Pointe Apartments (“North
Pointe” or the “Property”) is a 235-unit,
multi-family residential property located in Hyattsville, Maryland.
Hyattsville, MD is located within the Washington D.C. Metro Area
and is in close proximity to the Trust’s Brentwood, MD joint
venture. The joint venture is purchasing the property for $37.5
million or approximately $159,575 per unit ($217 per
square foot), representing a 5.7% capitalization rate. The Property
is expected to close during the third quarter of 2020.
The Property is being financed by a new first
mortgage for approximately $29.7 million with an approximate 3.0%
interest rate. The terms of the financing include a four-year
interest-only or I/O period, 30 year amortization and a twelve year
term. The remaining capital requirement, including closing and
working capital, is approximately $10.8 million and is being funded
through $6.8 million of common equity held 50% by the Trust and 50%
by the unrelated third party, with the remaining $4.0 million being
funded as preferred equity at an 8% rate of return, being held 100%
by the Trust.
ABOUT FIRM CAPITAL AMERICAN REALTY
PARTNERS TRUSTFirm Capital American Realty Partners Trust
(to be renamed “Firm Capital Apartment Real Estate
Investment Trust”) is a U.S. focused real estate
investment trust that pursues multi-residential income producing
real estate and related debt investments on both a wholly owned and
joint venture basis. Subsequent to the closing of the Property, the
Trust will have ownership interests in a total of 2,308 apartment
units diversely located in Florida, Connecticut, Texas, New York,
New Jersey, Georgia and Maryland.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain information in this news release
constitutes forward-looking statements under applicable securities
law. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "intend" and similar expressions.
Forward-looking statements necessarily involve
known and unknown risks, including, without limitation, risks
associated with general economic conditions; adverse factors
affecting the U.S. real estate market generally or those specific
markets in which the Trust holds properties; volatility of real
estate prices; inability to access sufficient capital from internal
and external sources, and/or inability to access sufficient capital
on favourable terms; industry and government regulation; changes in
legislation, income tax and regulatory matters; the ability of the
Trust to implement its business strategies; competition; currency
and interest rate fluctuations and other risks. Additional risk
factors that may impact the Trust or cause actual results and
performance to differ from the forward looking statements contained
herein are set forth in the Trust's Annual Information Form under
the heading Risk Factors (a copy of which can be obtained under the
Trust's profile on www.sedar.com).
Readers are cautioned that the foregoing list is
not exhaustive. Readers are further cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. Except as
required by applicable law, the Trust undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
Neither the Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For further
information, please contact: |
|
|
Eli Dadouch |
Sandy Poklar |
President & Chief Executive Officer |
Chief Financial Officer |
(416) 635-0221 |
(416) 635-0221 |
|
|
For Investor Relations information, please
contact: |
|
|
Victoria Moayedi |
|
Director, Investor Relations |
|
(416) 635-0221 |
|
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