Starlight Buys North Carolina Apartment Complex for $52M
Southpoint Acquisition, an indirect wholly owned subsidiary of the Starlight U.S. Multi-Family (No. 1) Core Plus Fund, said it has purchased Southpoint unencumbered for a purchase price of $51.5 million.
RALEIGH, NC-A nearly 300 unit garden-style apartment complex here has been sold to the Starlight US Multi-Family Core Plus Fund.
The fund, headquartered in Toronto, focuses on the US multifamily real estate market.
Specifically, the acquisition was of the Southpoint Crossing Apartments, a 288-unit, garden-style, multifamily property completed in 1999.
The building traded unencumbered for $51.5 million. In connection with the acquisition, the company said it has secured $27 million in new financing for a six-month term — $25.75 million of initial funding and $1.25 million of future funding for capital expenditures.
Subject to certain conditions, the financing will be interest-only and will be payable at an annual rate of one-month LIBOR plus 2.0%.
Southpoint has 13, three story walk-up buildings on a 26.2-acre site. The complex has one, two and three-bedroom units.
The fund said it plans to provide upgrades to apartments and common areas. Southpoint’s occupancy at 96.2% as April 30, with 99.9% of April rent collected.
RKW Residential has been retained to manage Southpoint.
In response to the COVID-19 pandemic, the fund said it has begun social distancing and enhanced cleaning protocols at all of its properties. “The fund’s priority is ensuring its residents are safe, while providing services, including cleaning and maintenance,” the company said. “The fund has been strictly adhering to the directives from health authorities and will continue to do so.”