"With demand high, new supply low and vacancy low, you've got to say the market has great prospects for rent growth," said one company executive. "We've got a lot of room to grow rent and improve operations without bumping up against housing or even condo sales."The acquisitions are expected to be financed through the assumption of $181 million of 5.2% secured debt with a weighted average term to maturity of eight years. The balance will be paid in cash to be generated from several sources including an existing $500-million credit facility, sale of communities under contract and in the future, as well as potentially issuing equity or other securities. Concurrent with the acquisition, the company says it has completed or is under contract to sell $174 million of properties encompassing 3,515 units in five separate transactions. The aggregate sales price represents a blended capitalization rate of 7.5% based on trailing 12-month NOI less a capital expenditure reserve of $470 per unit and an implied management fee. After the transactions are completed, UDRT will own and operate 80,000 units in 42 markets.
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