BRT Apartments Corp. Expands Portfolio with New Property
BRT Apartments Corp. Enhances Its Property Portfolio
BRT APARTMENTS CORP. (NYSE: BRT) has made a significant move in the real estate market by acquiring a new apartment complex, furthering its strategy to expand within the multifamily investment sector. This latest acquisition includes the Oaks at Victory, a well-known garden style apartment complex, which is set to bolster the company’s holdings.
Details of the Acquisition
The acquisition of Oaks at Victory is a notable addition, as it spans 150 units and features various types of apartment homes, accommodating a diverse range of tenants. Built in 1968, this complex includes one-, two-, and three-bedroom apartments, and offers a variety of modern amenities such as a clubhouse, fitness center, swimming pool, and laundry facilities. This property represents BRT's strategic interest in growing markets within the Southeast U.S.
Strategic Financing for Expansion
The company acquired this property for $23 million, which includes a $15.7 million mortgage taken up through a joint venture structure where BRT owns an 80% equity interest. This mortgage comes with a maturity date set for 2031 and an attractive interest rate of 2.71%, including a two-year interest-only period and a 30-year amortization.
Current Financial Position
As of the latest updates, BRT has approximately $17.5 million remaining on its $40 million credit facility, which currently holds an interest rate of 6.63%. The company has strategically planned for this debt to be cleared fully with anticipated refinancing proceeds expected in December 2025, showing a proactive approach to its financial management.
Management Statements on Growth Strategy
Jeffrey A. Gould, the President and CEO of BRT, expressed his enthusiasm regarding the acquisition. Earlier in the year, they also added a property called 1322 North in Auburn, Alabama. With the addition of Oaks at Victory, BRT aims to strategically position itself within the growing Southeastern market, reinforcing its commitment to driving stockholder value through acquisitions that contribute positively to AFFO and NAV per share growth.
Insights into the Company’s Operations
BRT Apartments Corp. is a real estate investment trust that actively owns and operates multi-family properties. Currently, the company boasts a portfolio that includes 31 multi-family properties with over 8,000 units across several states. BRT is continually looking for opportunities to enhance its operations by making strategic investment decisions that align with its business goals and market conditions.
Future Outlook
The completion of this acquisition not only showcases BRT's commitment to growth but also reflects its agile strategy in capitalizing on properties that can potentially yield substantial returns. As BRT navigates the evolving real estate landscape, its focus remains on strategic acquisition and keen management of its existing properties to increase shareholder value.
Frequently Asked Questions
What is the recent acquisition made by BRT Apartments Corp.?
BRT Apartments Corp. has recently acquired Oaks at Victory, a 150-unit garden style apartment complex.
What is the location of Oaks at Victory?
Oaks at Victory is located in Savannah, offering great access to local amenities and the greater area.
How much did BRT pay for the new property?
The property was acquired for approximately $23 million, funded largely through a mortgage and credit facility.
What type of property does BRT typically acquire?
BRT primarily acquires multi-family residential properties, focusing on improvements and value growth.
Who is the current CEO of BRT Apartments Corp.?
Jeffrey A. Gould serves as the President and Chief Executive Officer of BRT Apartments Corp.
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