NEXPOINT RESIDENTIAL TRUST, INC. (NYSE:NXRT) Files An 8-K Completion of Acquisition or Disposition of AssetsItem 2.01.
On June30, 2017, NexPoint Residential Trust, Inc. (the “Company”), through its operating partnership, NexPoint Residential Trust Operating Partnership, L.P. (“NXRT OP”), acquired a property in Marietta, Georgia from an unaffiliated third-party for approximately $113.5million. The property, Rockledge – A Residential Resort (“Rockledge”) totals 708 apartment units situated on 78.1 acres of contiguous land situated within Atlanta’s second largest ClassA 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. Originally developed in three phases by Post Properties, the community 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. The Company funded the purchase price with cash on hand, and borrowings of approximately $113.5million under the 2016 Bridge Facility with KeyBank National Association, as amended on June30, 2017, and a new first mortgage with the Federal Home Loan Mortgage Corporation (“Freddie Mac”), which the Company entered into, through NXRT OP, on June30, 2017. Following the completion of the reverse 1031 exchange, management expects the Rockledge loan-to-value ratio to stabilize at approximately 55%.
Additional information can be found on the Company’s website at www.nexpointliving.com, including a presentation that discusses the rationale and details of the transactions discussed above. More information will be provided on how these transactions impact the Company’s earnings for the remainder of 2017 and into 2018 when the Company releases earnings for the second quarter of 2017. Information contained on our website is not incorporated by reference herein.
Item 2.01 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 2.01 of this Current Report is incorporated into this Item 2.01 by this reference.
|Item 2.01.||Financial Statements and Exhibits.|
(a) Financial Statements. The financial information relating to Rockledge required under Rule3-14 of Regulation S-X will be filed by an amendment to this report no later than September18, 2017, which is the first business day that is 71 calendar days from the date that this report must be filed.
(b) Pro Forma Financial Information. The pro forma financial information required under Article 11 of Regulation S-X will be filed by an amendment to this report no later than September18, 2017, which is the first business day that is 71 calendar days from the date that this report must be filed.
(d) Exhibits. None.
About NEXPOINT RESIDENTIAL TRUST, INC. (NYSE:NXRT)
NexPoint Residential Trust, Inc. is an externally managed real estate investment trust (REIT). The Company’s investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions and achieve long-term capital appreciation for its stockholders through targeted management and a capex value-add program. It focuses on multifamily investments primarily located in the Southeastern and Southwestern United States. All of its business operations are conducted through NexPoint Residential Trust Operating Partnership, L.P. Its properties include The Miramar Apartments, Arbors on Forest Ridge, Cutter’s Point, Eagle Crest, Meridian, Toscana, The Grove at Alban, McMillan Place Old Farm Apartment Homes, Stone Creek at Old Farm Apartments and Dana Point. It owns approximately 40 properties consisting of over 12,960 units in approximately 10 markets. Its advisor is NexPoint Real Estate Advisors, L.P.