Home Properties says it expects a 9.4% initial capitalization rate but projects it will hit 10% in the second and subsequent years. Vacancy at the property, where rents average $804 per month, is just 3%. The apartment mix at the 30-year-old complex consists of 143 one-bedroom and 81 two-bedroom units in seven buildings.
Home Properties also assumed a $5.1 million mortgage at 7.88%.
The purchase was one of two completed by Home Properties, which also acquired a 435-unit complex in Silver Spring, MD. The REIT also sold six properties consisting of 1,304 units.
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