BRT Apartments Corp. Expands Portfolio with New Acquisition
BRT Apartments Corp. Expands Its Portfolio in the Southeast
GREAT NECK, N.Y. — BRT APARTMENTS CORP. (NYSE:BRT), a notable name in the real estate investment trust sector, has successfully acquired 1322 North, a modern 214-unit Class A apartment complex in a rapidly growing market.
Details of the Acquisition
This new acquisition aligns well with BRT's previous investment in The Village at Lakeside, another property located within close proximity. The two complexes are situated just a mile apart, benefitting from their closeness to significant local employers, which include a major educational institution and a prominent medical center.
Constructed in 2002, 1322 North comprises 214 well-designed apartment units within 14 residential buildings, both two and three stories high. The acquisition price was set at $36.5 million, which includes a mortgage of $24.4 million. The mortgage is arranged with favorable terms, being fixed at an interest rate of 5.38% and set to mature in 2032, primarily interest-only until maturity.
Strategic Growth in Real Estate
BRT’s involvement in this joint venture shows a commendable investment strategy, holding an 80% equity interest in the acquisition. Alongside this investment, BRT contributed $10.7 million from its own resources, while also utilizing $7.0 million from its credit facility, which carries a current interest rate of 6.87%. BRT’s plan includes timely refinancing options to manage outstanding debts efficiently up to March 31, 2026.
According to Jeffrey A. Gould, President and CEO, "The purchase of 1322 North is another example of our strategy of investing in properties in the Southeast, especially in markets that are growing with low supply and high demand for quality." His vision revolves around enhancing the company’s growth trajectory by integrating new acquisitions into their existing portfolio, thereby driving both funds from operations (AFFO) and net asset value (NAV) per share upward over time.
Understanding BRT Apartments Corp.
BRT Apartments Corp. operates as a real estate investment trust that not only owns a wide range of multi-family properties but also manages several joint ventures. Currently, BRT possesses and has stakes in 30 multi-family properties, totaling an impressive 8,161 units across 11 states. The diversity of their investment portfolio, focusing on quality residences in favorable locations, continues to solidify their standing in the marketplace.
Conclusion
With this latest acquisition, BRT Apartments Corp. appears poised to capitalize on ongoing trends in the Southeast real estate market, ensuring their active participation in areas experiencing growth. Their strategic approach to acquisitions and management underlines a commitment to building a robust and resilient portfolio.
Frequently Asked Questions
What is BRT Apartments Corp.'s latest acquisition?
BRT Apartments Corp. recently acquired 1322 North, a 214-unit Class A apartment complex.
Where is 1322 North located?
The apartment complex is situated in Auburn, Alabama, near other key properties owned by BRT.
What is the investment strategy of BRT Apartments Corp.?
BRT focuses on investing in properties in growing Southern markets with a demand for quality housing.
How does the joint venture work for this acquisition?
BRT holds an 80% equity interest in the joint venture that acquired 1322 North.
How many properties does BRT own?
BRT owns or has interests in 30 multi-family properties amounting to 8,161 units across 11 states.
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