LIV Development sold the Miller Creek at Germantown multifamily property at 3769 Skipping Stone Terr. in Memphis, TN to Trade Street Residential (NASDAQ: TSRE
) for $43.8 million, or about $133,000 per unit.
The 330-unit, 300,000-square-foot apartment community was built in March 2013 on 20 acres in the Lakes of Forest Hill submarket of Shelby County. The unit mix includes 122 one-bedroom, 162 two-bedroom, and 46 three-bedroom apartments, with asking rents between $895 and $1,520 per month.
The asset was 73 percent occupied at the time of sale. It features numerous amenities including nine-foot ceilings, stainless steel appliances, granite countertops, a resort-style swimming pool, fitness center, and community garden.
Trade Street financed the acquisition in part with a $26.3 million mortgage at 4.6% with a 10-year term and 30-year amortization schedule following three years of interest-only payments, as well as proceeds from the company's recent common stock rights offering and separate private placement transaction which resulted in gross proceeds of $150 million.
Blake Pera and Tommy Bronson with CBRE | Memphis represented the sellers. The buyers handled the sale in-house.
Please see CoStar COMPS #2939994 for additional information on this transaction.
In a separate deal that closed the same day, Trade Street Residential acquired the 288-unit Estates at Wake Forest in North Carolina for $37.2 million, or about $129,000 per unit. See CoStar COMPS #2939991.
"We are pleased to expand our platform with the acquisition of these two high quality, luxury communities," said 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."