REVEN HOUSING REIT, INC. (NASDAQ:RVEN) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On September 6, 2017, Reven Housing Alabama, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Reven Housing REIT, Inc. (the “Company”), entered into a Single Family Homes Real Estate Purchase and Sale Agreement (the “Birmingham 50 Agreement”) with A&J Investments, LLC, an Alabama limited liability company, and MFJ, LLC, an Alabama limited liability company (collectively, the “Birmingham 50 Sellers”), to purchase a portfolio of up to 50 single-family homes located in the Birmingham, Alabama metropolitan area from the Birmingham 50 Sellers. The Birmingham 50 Sellers are unaffiliated with the Company.
The Birmingham 50 Agreement provides for a deposit of $32,390 within five business days of the execution of the agreement, and a total contract purchase price for the 50 properties of $3,239,000, including closing costs and subject to certain adjustments.
For a period commencing on the effective date of the agreement and ending on October 6, 2017 (the “Due Diligence Period”), the Company may conduct inspections to determine whether the properties are suitable for the Company’s purposes, in the Company’s sole discretion, including, without limitation, whether there are any necessary repairs or improvements to bring the properties into compliance with the applicable local building code, if recommended. If the Company elects to proceed with the transaction after the expiration of the Due Diligence Period, the Seller will, at its option, conduct the repairs at its cost or reduce the purchase price by the amount of such costs, provided that if the aggregate costs of such repairs exceed 2.5% of the purchase price, the Seller will also have the option to exclude up to five properties requiring repair and reduce the aggregate purchase price by amount attributable to the excluded homes.
The Birmingham 50 Agreement provides that the closing for the purchase of the properties is to occur within 30 days after the expiration of the Due Diligence Period. The Company’s purchase of the 50 single-family homes is subject the Company’s due diligence review of the properties and the Company’s receipt of the additional capital or financing commitments. There can be no assurance that the Company will consummate the acquisition.
The foregoing description of the Birmingham 50 Agreement is qualified in its entirety by reference to the full text of the agreement, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
The following exhibits are filed with this report:
Reven Housing REIT, Inc. ExhibitEX-10.1 2 v474742_ex10-1.htm EXHIBIT 10.1 Exhibit 10.1 SINGLE FAMILY HOMES REAL ESTATE PURCHASE AND SALE AGREEMENT by and between A & J INVESTMENTS,…To view the full exhibit click here
About REVEN HOUSING REIT, INC. (NASDAQ:RVEN)
Reven Housing REIT, Inc. is a holding company. The Company is an internally managed real estate investment trust. It is engaged in the acquisition, ownership and operation of portfolios of leased single family homes in the United States. Its objective is to generate cash flow and distribute resulting profits to its stockholders in the form of distributions, while gaining home price appreciation at the same time through the ownership of its portfolio properties. It operates its portfolio properties as single family rentals (SFRs), and generates its revenue from rental income from the existing tenants of the SFRs. As of December 31, 2015, it owned a total of 527 homes, of which 256 homes were in the Jacksonville, Florida metropolitan area; 168 homes were in the Houston, Texas metropolitan area; 94 homes were in the Memphis, Tennessee metropolitan area (with two of the Memphis homes located across the border in Mississippi), and nine homes were in the Atlanta, Georgia metropolitan area.
