Centerspace Strengthens Its Denver Presence
Centerspace, known for its dedication to providing quality living options across the United States, has recently made headlines with the acquisition of The Lydian for a total of $54 million. This is a significant move for the company, reflecting its commitment to enhancing the living experiences of its residents as well as expanding its footprint in the densely populated Denver market.
Financial Highlights of the Acquisition
On October 1, Centerspace completed the acquisition of The Lydian, an apartment community that consists of 129 homes alongside 23,000 square feet of fully leased office and retail space. The property, constructed in 2018, is conveniently located near public transit options, making it an attractive choice for residents.
Acquisition Details and Financing
The financing structure for this acquisition includes the assumption of $35 million of mortgage debt. This debt has a favorable interest rate of 3.72%, which is interest-only until early 2032, with a maturity date set for February 2037. Additionally, the company issued $14.5 million worth of common operating partnership units valued at $76.42 each, as part of the acquisition strategy.
Preferred Share Redemption Impact
Centerspace also made strides in financial management by redeeming all outstanding 6.625% Series C Cumulative Redeemable Preferred Shares by September 30. This redemption has positively affected the company's financial standing and demonstrates proactive steps in managing its balance sheet and obligations.
Growing Facilities and Community Impact
With the acquisition of The Lydian, Centerspace continues its journey in the Denver market, where it has established 2,536 homes across nine communities since entering the market in 2017. This latest addition represents the company’s growth ambition and alignment towards serving the growing demand for quality living spaces in urban areas.
The Role of Community in Centerspace's Mission
President and CEO Anne Olson expressed enthusiasm about welcoming The Lydian to the portfolio, emphasizing that having a strong presence close to existing communities will enhance their ability to enrich the lives of residents with improved services. This focus on delivering value translates into Centerspace’s longstanding purpose, which is to create “Better Every Days” for all involved.
About Centerspace
Founded in 1970, Centerspace is dedicated to owning and operating apartment communities across several core regions, including Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. The company holds 71 apartment communities with a total of 13,012 homes. Centerspace has been recognized as a top workplace by the Minneapolis Star Tribune for five consecutive years, showcasing its commitment to an exceptional living and working environment.
Contact Information for Further Inquiries
If you’re looking for more detailed information about the acquisition or Centerspace’s broader business strategy, please reach out to Josh Klaetsch from Investor Relations at (701) 837-7104.
Frequently Asked Questions
What was the total cost for acquiring The Lydian?
The total consideration for acquiring The Lydian was $54 million.
How many apartment communities does Centerspace currently own?
Centerspace currently owns 71 apartment communities consisting of 13,012 homes.
What improvements were announced regarding the preferred shares?
Centerspace has completed the redemption of all outstanding 6.625% Series C Cumulative Redeemable Preferred Shares.
Where is The Lydian located?
The Lydian is situated in the Five Points neighborhood, in close proximity to Denver’s light rail station.
What financial strategies did Centerspace use for this acquisition?
The acquisition was financed through a combination of mortgage debt, the issuance of common operating partnership units, and cash.
