HOUSTON, TX – BSR Real Estate Investment Trust announced that it has acquired Broadstone Park West, a 370-suite garden-style community in Houston, Texas, for $ 51 million from Starlight Investments.
The transaction was accomplished through a combination of a draw on the REIT's credit facility of approximately $ 40.0 million and the issuance of approximately $ 10.4 million in trust in the REIT at $ 12.25 per share financed pro rata shares. The debt versus gross book value is 49.8% and the REIT has liquidity of USD 54.5 million after the purchase. The property addition is expected to have an immediate positive impact on the REIT's Adjusted Funds from Operations ("AFFO") per unit.
Broadstone was established in the Greater Houston Statistical Area ("MSA") in 2014, the fifth largest MSA in the United States, home to 21 Fortune 500 companies. The property has numerous amenities including a clubhouse, fitness center, resort style swimming pool with sundeck, garages and a dog park. The REIT now owns 2,332 residential units in the Houston MSA, which BSR has served for 20 years.
"The Broadstone acquisition is another example of BSR's growth in line with our defined clustering strategy," said John Bailey, Chief Executive Officer of BSR. "Broadstone is an attractive asset with the newer amenities that our residents want. We will add value to the property by applying it to our internal management platform, as we have done with other properties acquired since our IPO."
The acquisition of Broadstone is the eleventh property acquisition for BSR since the initial public offering ("IPO") on the Toronto Stock Exchange in May 2018. Other acquisitions after the IPO included Satori in the Long Meadow Apartments built in 2019 and the Houston MSA. At the MSA in Austin, Ariza at Plum Creek, Retreat at Wolf Ranch, Cielo and Madrone Apartments were acquired. In the Dallas-Fort Worth MSA, Wimberly, Auberry at Twin Creeks and Riverhill Apartments were acquired. Other acquisitions were Brandon Place Apartments in Oklahoma City, OK, and Towne Park in Harber Apartments in northwest Arkansas, MSA. These acquisitions expanded the REIT's portfolio by 3,235 residential units with an average age of ten years, compared to the previous 20 sales with a total of 3,666 residential units and an average age of 38 years.
Source: BSR Real Estate Investment Trust