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UNITED STATES./
TORONTO, Nov. 13, 2020 /CNW/ - Starlight U.S.
Multi-Family (No. 1) Core Plus Fund (TSX.V: SCPO.UN) (the "Fund")
announced today that it has entered into an agreement to acquire
The Bluffs at Highlands Ranch
("The Bluffs"), a 340-suite, Class "A", garden-style, core-plus
multi-family property completed in 1994, located in the
Metropolitan Area of Denver,
Colorado.
"The purchase of The Bluffs represents the Fund's first purchase
in the Denver market and further
enhances the Fund's geographical diversification. The apartment
community is well located and has excellent prospects for
growth in operating income, aligning well with the Fund's
investment objectives and strategy," commented Evan Kirsh, the Fund's President.
Pursuant to a purchase and sale agreement effective November 13, 2020, Bluffs Acquisition LLC, a
wholly owned indirect subsidiary of the Fund, has agreed to
purchase The Bluffs unencumbered for approximately US$108.5 million. The purchase agreement contains
customary representations and warranties for a transaction of this
nature and, subject to the satisfaction or waiver of conditions
precedent, is scheduled to close on or about December 15, 2020. In connection with the
acquisition, the Fund expects to draw approximately $70.5 million from committed availability on the
Fund's credit facility which matures on November 1, 2024 and carries interest-only
payments until maturity at the U.S. 30-day Secured Overnight
Financing Rate + 2.35%.
Following completion of the transaction described above, the
Fund anticipates it will have sufficient liquidity to acquire at
least one additional partial or wholly-owned multi-family property.
The Fund continues to evaluate opportunities to acquire such
additional properties.
The Bluffs at Highlands
Ranch
The Bluffs consists of 37, three storey walk-up buildings on a
21.0-acre site comprised of one-bedroom, two-bedroom and
three-bedroom suites, in addition to one two-storey clubhouse
building. Currently, apartment suites feature quartz countertops
with undermounted sinks, upgraded plumbing fixtures, stainless
steel appliances, updated lighting and upgrades to the flooring in
entryways and wet areas (kitchen and bath) for all suites and
additionally in the living areas of all ground floor suites. The
suites also include a built-in dry bar area, balconies for every
bedroom, gas fireplaces, washers and dryers, large bedroom closets
and vaulted ceilings in select suites. Indoor amenities include an
expansive clubhouse, state-of-the-art fitness centre with on-demand
WEXER fitness classes and Peloton bikes, media room, business
centre, recreation room with a shuffleboard, racquetball court,
sauna, and dog wash station. Outdoor amenities include a
resort-style pool with spa and sundeck, outdoor fireplace and
seating area, basketball court, tennis court, volleyball court,
jogging trails, dog park, and package lockers. As part of the
Fund's business plan, The Bluffs will be further repositioned to a
modern standard with additional upgrades to suite finishes, common
areas and amenity spaces, and the property's curb appeal will be
improved. As of November 10, 2020,
The Bluffs occupancy was 95.0%.
Upon completion of the acquisition, the Fund will retain Avenue5
Residential ("Avenue5") to property manage The Bluffs. Avenue5 is
currently the 15th largest property management company
in the United States with
approximately 70,000 suites under management.
The Fund Portfolio
Following the acquisition of The Bluffs, the Fund will have
interests in and operate a portfolio comprising 1,898 multi-family
suites in six core-plus, income producing apartment communities
located in Tampa, Florida;
Atlanta, Georgia; Nashville, Tennessee, Raleigh, North Carolina; Austin, Texas; and Denver, Colorado.
About Starlight U.S. Multi-Family (No. 1) Core Plus
Fund
The Fund is a limited partnership formed under the Limited
Partnerships Act (Ontario) for
the primary purpose of indirectly acquiring, owning and operating a
portfolio of income producing rental properties in the United States multi-family real estate
market.
Forward-looking Statements
This news release contains statements that may constitute
forward-looking statements within the meaning of Canadian
securities laws and which reflect the Fund's current expectations
regarding future events, including the ability to deploy the
remaining proceeds from the initial public offering and the
financial performance of the Fund and its properties,
including fthe impact of COVID-19 on the business and
operations of the Fund and The Bluffs. Particularly, statements
regarding future results, performance, achievements, prospects or
opportunities for Fund 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'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: the
acquisition and financing of The Bluffs; the ability to deploy the
remaining proceeds from the initial public offering; the impact of
COVID-19 on the Fund's portfolio, including The Bluffs, as well as
the impact of COVID-19 on the markets in which the Fund
operates and the trading price of the Fund's listed units; the
applicability of any government regulation concerning the Fund's
tenants or rents as a result of COVID-19; reliance on the Fund's
manager; the expected benefits of the ownership of The Bluffs; the
property management of The Bluffs; the experience of the Fund's
officers and directors; substitutes for residential real estate
rental suites; 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
overall financial performance of the Fund's portfolio including as
a result of the acquisition and financing of The Bluffs; the
ability to deploy the remaining proceeds from the initial
public offering; the impact of COVID-19 on the Fund's
portfolio, including The Bluffs, as well as the impact of COVID-19
on the markets in which the Fund operates and the trading price of
the Fund's listed units; the applicability of any government
regulation concerning the Fund's tenants or rents as a result of
COVID-19; the ability of the manager of the Fund to manage and
operate the Fund's properties; the ability of the property managers
selected to manage the Fund's properties; the population of
multi-family real estate market participants; assumptions about the
markets in which the Fund operates; 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 the Fund
or its 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 (No. 1) Core Plus Fund