NexPoint Residential Trust Inc. entered into an agreement to purchase a three-property portfolio in Las Vegas, Nevada from an unaffiliated third party for approximately $241 million. The properties, Bella Solara, a 320-unit property built in 1989; Bloom, a 528-unit property built in 1989; and Torreyana, a 315-unit property built in 1997 (collectively, the “Las Vegas 3 Portfolio”), are situated on approximately 13.3, 26.9 and 16.3 acres of land, respectively. As of October 16, 2019, the Las Vegas 3 Portfolio was 94.6% occupied with a weighted average effective monthly rent of approximately $1,200.
The purchase of the Las Vegas 3 Portfolio will be financed by $132.55 million of Federal Home Loan Mortgage Corporation mortgages provided by KeyBank National Association and SunTrust Bank with the remainder funded by borrowings of approximately $110.0 million under the Company’s revolving credit facility.
The purchase of the properties is subject to customary closing conditions set forth in the Agreement. The Agreement also contains customary representations and warranties and covenants of the parties. The purchase of the Las Vegas 3 Portfolio is expected to close in November. There can be no assurance that the closing conditions will be satisfied or that the purchase will be consummated.
NexPoint Residential Trust is a publicly traded REIT primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with “value-add” potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States.