Trade Street Buys Two Luxury Properties for $81M

AVENTURA, FL-Locally-based Trade Street Residential Inc. reports it has completed the acquisition of two recently completed residential communities in Wake Forest, NC and Memphis, TN for a combined price of $81 million.

The company states that it acquired The Estates at Wake Forest, a 288-unit apartment community located in Wake Forest for approximately $37.2 million. Trade Street also purchased Miller Creek at Germantown, a 330-unit apartment community in Memphis for approximately $43.8 million.

"We are pleased to expand our platform with the acquisition of these two high quality, luxury communities," states Michael Baumann, CEO and Chairman of Trade Street Residential. "These newly constructed apartment communities further reduce the average age of our portfolio and expand our presence in North Carolina and Tennessee, two states with rapidly expanding populations and employment. As we progress throughout 2014, we will continue to look for opportunities to grow our portfolio selectively, acquiring high-quality, well-located communities across the Sunbelt, while continuing to improve operating metrics and increase margins across our portfolio."

In connection with its purchase of The Estates at Wake Forest, the company secured a mortgage of $18.6 million for seven years with interest only payments for the full term of the loan at a fixed rate of 3.9%. Construction was completed on the project in September 2013.

The company obtained a mortgage of $26.3 million for 10 years at a fixed rate of 4.6% with three years of interest only payments followed by principal and interest payments based on a 30-year amortization schedule thereafter in connection with its acquisition of Miller Creek.

The acquisitions were funded in part with proceeds from the company's recently completed common stock rights offering and separate private placement transaction in which the company raised gross proceeds of $150 million.