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BRT Apartments Closes Sale of The Fountains Apartments for a USD 21.3m Gain
Wednesday 14 February 2018

14 February 2018 - US-based REIT BRT Apartments Corp. (NYSE: BRT) has closed the sale of The Fountains Apartments, Palm Beach Gardens, Florida and redeployed a portion of the sales proceeds into the purchase of The Avenue Apartments, a 522-unit value-add property located in Ocoee, a suburb of Orlando, Florida, the company said.

The company anticipates the investment of the remainder of the sales proceeds by the end of February.

On 5 February, the company sold The Fountains Apartments, a 542-unit property located in Palm Beach Gardens, Florida, for USD 97.2m and a gain of approximately USD 41.8m.

BRT's share of this gain, after giving effect to non-controlling interests of approximately USD20.5 m, will be approximately USD 21.3m.

On 7 February 2018, the company acquired, through a joint venture in which it has a 50% equity interest, The Avenue Apartments, a 522-unit multi-family property located in Ocoee, Florida, a suburb of Orlando, for USD 71.3m, including USD 53.1m of mortgage debt obtained in connection with the acquisition.

The mortgage debt matures in 2028, carries an interest rate of 3.90%, is interest only for seven years, and thereafter amortizes over 30 years.

BRT contributed USD 12.4m of equity from the sales proceeds of the Fountains towards this acquisition.

The Avenue Apartments, a value-add opportunity, is ten minutes from downtown Orlando and is proximate to a number of major retailers as well as prominent employers including Disney, Universal Studios and the Florida Hospital.

This dynamic employment environment coupled with BRT's planned unit upgrades will allow the company to position the property for enhanced revenue growth.

Contemplated improvements include upgraded exteriors, kitchens, baths and flooring.

BRT is a real estate investment trust that either directly, or through joint ventures, owns, operates and develops multi-family properties.
Date Published: 14/02/2018
Target: The Fountains Apartments
Country: USA
Deal Size: 97.2m (USD)
Sector: Construction/Real Estate
Type: Divestment
Financing: Cash
Status: Closed
Vendor: BRT Apartments Corp