BSR REIT Announces Purchase of the Venue Craig Ranch Apartments in Suburban Dallas and Redemption of Convertible Debentures
LITTLE ROCK, Ark. and TORONTO, Jan. 9, 2025 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX: HOM.U) (TSX: HOM.UN) announced today that it has acquired The Venue Craig Ranch Apartments ("The Venue") in the fast growing McKinney submarket of the Dallas/Fort Worth ("DFW") metropolitan statistical area ("MSA") for a purchase price of $61 million.
The Venue is a Class "A" multifamily community constructed in 2017 with 277 apartment units made up of one, two, and three-bedroom floorplans. It features attached garages, a large business center, gourmet kitchens featuring stainless steel appliances, spacious dog park, walk-in closets, resort-style swimming pool and modern fitness center and is zoned to the Frisco Independent School District which is ranked in the Top 1% in Texas and Nationwide.
"The Venue Craig Ranch is a perfect addition to BSR's portfolio and is in a high-growth DFW submarket that we know well," said Dan Oberste President and Chief Executive Officer of the REIT. "As we integrate The Venue into BSR's proven management platform, we expect to identify opportunities to enhance the operating income from the property. Our talented team continues to identify opportunistic transactions in a challenging environment. We expect to see more rotation and acquisition opportunities arising as the transaction market improves."
The REIT will fund the acquisition by drawing on its revolving credit facility and intends to sell approximately $60 million in assets in 2025 to reduce the balance then outstanding.
BSR now owns and operates 9,181 apartments units total, with 3,502 or 38% in the DFW MSA. Dallas has been the leading US market in terms of both demand for rental accommodation and absorption of new supply, positioning the market for significant potential growth in rental rates.
BSR also announced the redemption in full of all issued and outstanding Convertible Debentures on January 3rd 2025. The REIT previously announced its intention to redeem the Convertible Debentures in its Q3 2024 earnings release. The aggregate principal amount was $41.5 million, plus accrued and unpaid interest. The redemption of the Convertible Debentures was funded by drawing on the REIT's revolving credit facility.
About BSR Real Estate Investment Trust
BSR Real Estate Investment Trust is an internally managed, unincorporated, and open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT owns a portfolio of multifamily garden-style residential properties located in attractive primary and secondary markets in the Sunbelt region of the United States.
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the REIT's Management's Discussion and Analysis for the third quarter of 2024, dated November 7, 2024, which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law. The REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE BSR Real Estate Investment Trust