Resource Apartment REIT III, Inc.Files An 8-K Entry into a Material Definitive AgreementItem 1.01.
On June 12, 2017, Resource Apartment REIT III, Inc. (the Company), through its operating partnership, entered into an agreement to purchase an apartment community located in Duval County, Florida (the Property) from an unaffiliated seller, MREI III Bay Club, LLC. The Property is an apartment community with 220 units and amenities, including private garages for each unit, a clubhouse, pool, fitness center and business center. The contract purchase price for the Property is $28.3 million, excluding closing costs.
to the agreement, the Company is obligated to make an earnest money deposit of $1 million. The Company will be obligated to purchase the Property only after satisfaction of agreed upon closing conditions. The Company intends to fund the purchase of the Property with proceeds from its ongoing initial public offering and debt proceeds. There can be no assurance that the Company will complete the acquisition. In some circumstances, if the Company fails to complete the acquisition, the Company may forfeit up to $1 million of earnest money.