Canadian Investment Funds Continue to Target Southwest U.S. Apts.
By Mark Heschmeyer
Canadian funds and REITs continue to be among the most active buyers of multifamily properties in U.S. Sunbelt states.
One the latest deals comes from Starlight U.S. Multi-Family Core Fund, a newly created fund sponsored and managed by Starlight Investments Ltd in Toronto.
Starlight U.S. Multi-Family Core Fund and its second sister fund agreed to acquire Soho Parkway Apartments, a 379-unit, garden-style apartment complex in North Dallas. The funds are expected to acquire the property for $41.3 million, or about $108,970 per unit.
Starlight has lined up a first mortgage loan of $28.3 million with a three year term with two one year extensions available. The loan will be interest only for the entire term and will be payable at an annual rate of LIBOR plus 2%.
The southwest region is an increasingly popular destination for Canadian investment dollars. Milestone Apartments REIT, which has offices in Toronto and Dallas, this week entered into an agreement to sell 5.78 million shares of the REIT to a syndicate of underwriters led by BMO Capital Markets for gross proceeds of $54.4 million.
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