"We believe it was prudent to take advantage of this period of historically low interest rates,'' says Bruce O'Neil, Amstar's director of finance.
He says the swaps ''mitigated Amstar's exposure to floating interest rates, which is one of the largest risks on the liability side of our balance sheet. In addition to satisfying our very healthy appetite for hedging, these swaps fix the LIBOR rate on this debt at less than 5% for three years."
Founded in 1987, Amstar controls a diversified portfolio valued at more than $700 million. Its holdings include apartments, office buildings and hotels.
Amstar also has a capital investment affiliate, AGL Capital Investments LLC, a private equity firm that invests in companies serving or operating in the commercial and residential real estate industries.
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