Firm Capital American Realty Partners Corp. Announces the Purchase of a 50% Interest in a 138-Unit, Multi Residential Buildin...
September 16 2019 - 5:35PM
Firm Capital American Realty Partners Corp. (the
“
Company”), (TSXV: FCA.U), (TSXV: FCA) is pleased
to announce it will be entering into a $20.3 million joint venture
located in the Greater Atlanta Area.
The Company will be entering into a joint
venture with an unrelated third party to acquire the Riverview
Apartments (“Riverview” or the
“Property”). Built in 2008, Riverview is a
138-unit, multi-family residential building located in Canton,
Georgia (a submarket of Atlanta, Georgia) with a total square
footage of 103,562 square feet. The joint venture is investing
approximately $20.3 million (including transaction costs and the
capital expenditure program as outlined below) into the property,
representing a 5.08% going-in capitalization rate based on the
purchase price of $18.35 million or approximately $133,000 per unit
or approximately $177 per square foot.
In addition, a capital expenditure program will
be implemented in the joint venture to undertake various upgrades
to the apartment units, green renovation initiatives, and common
areas. This capital expenditure program is anticipated to take two
years and is expected to further increase cash flow and be
accretive to the joint venture.
The unrelated third party is a highly
experienced owner/operator of real estate with over $18 billion of
real estate owned and managed over its management team’s
careers.
The Property is expected to be financed, in
part, by a new first mortgage for approximately $14.0 million. The
terms of the financing include a four-year interest-only period,
30-year amortization and a ten-year term. The remaining capital
requirement of approximately $6.3 million is funded through $3.15
million of common equity held 50% by the Company and 50% by the
unrelated third party, and the excess equity of $3.15 million is
being funded as preferred equity at an 8% rate, also held by the
Company. Closing of the Property is anticipated to be on or
approximately September 27, 2019.
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.
FORWARD LOOKING
INFORMATIONCertain 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 Company 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 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 TSX
Venture 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.
For further information, please contact:
Eli DadouchPresident & Chief Executive Officer(416)
635-0221 |
Sandy PoklarChief Financial Officer(416) 635-0221 |
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