/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Jan. 29, 2015 /CNW/ - Starlight U.S. Multi-Family
(No. 1) Core Fund (TSX.V: UMF.A, UMF.U) ("Fund No. 1") and
Starlight U.S. Multi-Family (No. 3) Core Fund (TSX.V: SUS.A, SUS.U)
("Fund No. 3") announced today that they have entered into
an agreement to acquire Belle Haven Apartments, a certified
LEED-Silver, 176 unit, garden style, Class "A", apartment complex,
completed in 2014 and located in a rapidly growing area in
northeast Charlotte, North
Carolina at 9005 Post Canyon Lane. LEED-Silver certifies
that the property is environmentally efficient and provides its
residents with the benefit of reduced energy and water costs as
well as a lower carbon and pollution footprint.
In connection with the acquisition of Belle Haven Apartments,
Fund No. 1 has agreed to acquire an indirect 662/3%
interest and Fund No. 3 has agreed to acquire an indirect
331/3% interest. All decision making in respect of
Belle Haven Apartments, including day-to-day and material
decisions, will be jointly made by Fund No. 1 and the Fund No. 3
through established governance practices.
Pursuant to a purchase and sale agreement effective January 16, 2015 as amended from time to time,
Belle Haven Acquisition LLC, an indirect wholly owned subsidiary of
Fund No. 1 and Fund No. 3, has agreed to purchase Belle Haven
Apartments unencumbered for the purchase price of approximately
US$26.4 million. The purchase
agreement contains customary representations and warranties for a
transaction of this nature. Subject to the satisfaction or waiver
of conditions precedent, the purchase of Belle Haven Apartments is
scheduled to close on or about February 17,
2015.
In connection with the acquisition of Belle Haven Apartments,
new financing in the amount of approximately US$22.9 million has been secured for a three year
term with two one year extensions available. Subject to certain
conditions, financing will be interest only and will be payable at
a blended rate of approximately 3.68%. Fund No. 1 and Fund No. 3
have each assumed responsibility for the liabilities of Belle Haven
Apartments on a pro-rata ownership basis.
Belle Haven Apartments
Belle Haven Apartments consists of seven, three storey walk-up
buildings on a 12.89 acre site comprised of one, two and three
bedroom units. Each apartment unit at Belle Haven Apartments
contains modern features including energy star stainless steel
appliances, designer dark espresso kitchen cabinetry, granite
countertops, upgraded track lighting and private patios or
balconies. Amenities at Belle Haven Apartments include a central
clubhouse containing a state-of-the-art fitness centre with yoga
studio, a sports and entertainment lounge, a games room and a
business centre. Exterior features include a swimming pool with
water trellis, barbeque grills, a dog park with a pet washing
station and a car care centre. As of January
12, 2015, Belle Haven Apartments' occupancy was 94.3%.
Following completion of the acquisition, the Fund expects to
retain Greystar Real Estate Partners ("Greystar"), the
largest third party, multi-family property manager in the United States, as the property manager at
Belle Haven Apartments. Greystar is currently managing five
communities for Fund No. 1 and Fund No. 3.
Fund No. 1 and Fund No. 3 Portfolio
Following completion of the acquisition of Belle Haven
Apartments, Fund No. 1 expects to have interests in and operate a
portfolio comprising 2,180 recently constructed, Class "A"
stabilized, income producing multi-family real estate units located
in Dallas and Houston, Texas and Charlotte, North Carolina.
Following completion of the acquisition of Belle Haven
Apartments, Fund No. 3 expects to have interests in and operate a
portfolio comprising 1,493 recently constructed, Class "A"
stabilized, income producing multi-family real estate units located
in Dallas, Austin and Houston,
Texas and Charlotte, North
Carolina.
About Starlight U.S. Multi-Family Core Fund and Starlight
U.S. Multi-Family (No. 3) Core Fund
Fund No. 1 and Fund No. 3 are each limited partnerships formed
under the Limited Partnerships Act (Ontario) for the primary purpose of indirectly
acquiring, owning and operating a portfolio of diversified income
producing rental properties in the U.S. multi-family real estate
market.
Forward-Looking Information
This news release contains statements that may constitute
forward-looking statements within the meaning of Canadian
securities laws and which reflect Fund No. 1 and Fund No. 3's
current expectations regarding future events, including statements
concerning the acquisition of Belle Haven Apartments, the financing
of Belle Haven Apartments and the property management of Belle
Haven Apartments. Particularly, statements regarding future
results, performance, achievements, prospects or opportunities for
Fund No. 1, Fund No. 3 or the real estate industry are
forward-looking statements. In some cases, forward-looking
statements can be identified by terms such as "may", "might",
"will", "could", "should", "would", "occur", "expect", "plan",
"anticipate", "believe", "intend", "seek", "aim", "estimate",
"target", "project", "predict", "forecast", "potential",
"continue", "likely", "schedule", or the negative thereof or other
similar expressions concerning matters that are not historical
facts.
The forward-looking statements in this news release involve
risks and uncertainties, including those set forth in the Fund No.
1 and Fund No. 3's materials filed with the Canadian securities
regulatory authorities from time to time at www.sedar.com. Actual
results could differ materially from those projected herein. Those
risks and uncertainties include, among other things, risks related
to: reliance on Fund No. 1 and Fund No. 3's manager; the ability to
complete the acquisition of Belle Haven Apartments; the terms and
availability of financing for Belle Haven Apartments; the expected
benefits of the ownership of Belle Haven Apartments; the experience
of Fund No. 1 and Fund No. 3's officers and directors; substitutes
for residential real estate rental units; reliance on property
management; competition for real property investments and tenants;
and U.S. market factors.
Information contained in forward-looking statements is based
upon certain material assumptions that were applied in developing
such forward-looking statements including management's perceptions
of historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances, including the following: the
ability of Fund No. 1 and Fund No. 3 to complete the acquisition of
Belle Haven Apartments and secure acceptable financing; the ability
of the manager of Fund No. 1 and Fund No. 3 to manage and operate
Fund No. 1 and Fund No. 3's properties; the ability of the property
managers selected to manage Fund No. 1 and Fund No. 3's properties;
the population of multi-family real estate market participants;
assumptions about the markets in which Fund No. 1 and Fund No. 3
operate; the global and North American economic environment;
foreign currency exchange rates; and governmental regulations or
tax laws. Readers are cautioned against placing undue reliance on
forward-looking statements. Except as required by applicable
Canadian securities laws, none of Fund No. 1, Fund No. 3 or their
manager undertake any obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Starlight U.S. Multi-Family Core Fund