All amounts are in US Dollars unless otherwise
stated.
TORONTO, Dec. 27, 2018 /CNW/ - Firm Capital American
Realty Partners Corp. (the "Company"), (TSXV: FCA.U),
(TSXV: FCA) is pleased to announce the closing of its previously
announced acquisition in the Bronx, NY.
The Company entered into a joint venture with SBT Property to
acquire the Tinton Portfolio, a 132 unit multi-family residential
portfolio comprised of three buildings located in the Port Morris
neighborhood in the Bronx. The
Tinton Portfolio was acquired for approximately $25.0 million (including transaction costs),
representing a 6.0% going-in capitalization rate or $215 per square foot.
The Tinton Portfolio was financed, in part, by three new secured
first mortgages at a 4.4% interest rate for approximately
$16.5 million. The terms of the
financing include a two year interest-only period, 30 year
amortization and a seven year term. The remaining capital
requirement of approximately $8.5
million was funded through a combination of (i) $4.8 million of preferred equity yielding 8.0% to
be held by the Company; and (ii) $3.7
million of common equity held 50% by the Company and 50% by
SBT Property.
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm
Capital American Realty Partners Corp. is a U.S. focused real
estate investment entity that pursues real estate and debt
investments through the following platforms:
- Income Producing Real Estate Investments: Acquiring
income producing real estate assets in major cities across
the United States. Acquisitions
are completed solely by the Company or in joint-venture partnership
with local industry expert partners who retain property management
responsibilities; and
- Mortgage Debt Investments: Real estate debt and equity
lending platform in major cities across the United States, focused on providing all
forms of bridge mortgage loans and joint venture capital.
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 in this news release include, but are not limited to,
statements with respect to the Company's intention to complete the
sale of its single-family homes (and the ability to do so for
consideration that accords with the estimated value of the
portfolio, as set out above) and ultimate debt repayments, the use
of proceeds from the new loan described above, the use of proceeds
from (and timing of) the disposition of the Company's portfolio of
single family homes located in Atlanta, potential capital financing and
growth opportunities, as well as the Company's intention to acquire
income producing U.S. real estate assets and complete joint venture
partnerships and mortgage debt and equity lending investments.
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 Company
holds properties; volatility of real estate prices; inability to
complete the Company's single family property disposition program,
debt repayments or debt restructuring in a timely manner; 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 Company to implement
its business strategies; competition; currency and interest rate
fluctuations and other risks, including those described in the
Company's public disclosure documents on SEDAR at
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.
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. Additional information about the Company is available at
www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital American Realty Partners Corp.
