NexPoint Residential Trust Inc. has purchased a 708-unit apartment community in Marietta, GA. Rockledge—a residential resort—was purchased from an unaffiliated third-party for approximately $113.5 million.
Rockledge consists of 708 units situated on 78.1 acres of contiguous land within Atlanta’s second largest Class A Office submarket (Cumberland/Galleria), approximately one mile from the new Atlanta Braves stadium (Sun Trust Park), with direct access to the Chattahoochee River National Recreation Area, according to a prepared statement. Originally developed in three phases by Post Properties, Rockledge had average monthly rents of $1,153 and 93.6% physical occupancy at acquisition.
The Rockledge acquisition was structured as a reverse 1031 exchange to facilitate the company’s continued plan to recycle capital in a tax efficient manner from dispositions of its rehabbed assets into well-located, “covered-land” assets with value-add potential in the company’s core target markets.
NexPoint funded the purchase price with cash on hand, and borrowings of approximately $113.5 million under a bridge facility with KeyBank National Association, and a new first mortgage with the Federal Home Loan Mortgage Corp., which the REIT entered into, through NXRT OP, on June 30, 2017. Following the completion of the reverse 1031 exchange, management expects the Rockledge loan-to-value ratio to stabilize at approximately 55%.
NexPoint Residential Trust is a publicly traded REIT 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.