/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES./
TORONTO, March 28,
2022 /CNW/ - Starlight U.S. Residential Fund (TSXV:
SURF.A) (TSXV: SURF.U) (the "Fund") announced today that it
has entered into an agreement to acquire Eight at East
("Eight"), a 264-suite Class "A" institutional quality
multi-family property completed in 2017 and located in the East
Orange County submarket of Orlando,
Florida (the "Acquisition").
Pursuant to a purchase and sale agreement (the
"Agreement") dated March 10,
2022, Eight at East Acquisition LLC, a wholly owned
subsidiary of the Fund, has agreed to purchase Eight unencumbered
for approximately US$91.75
million. The Agreement contains customary
representations and warranties for a transaction of this nature
and, subject to the satisfaction or waiver of conditions precedent,
is scheduled to close on or about April 22,
2022. The Fund has waived its due diligence conditions from
the Agreement.
In connection with the acquisition of Eight, new financing in
the amount of approximately US$64.2
million has been secured for an initial term of three years
subject to two one-year extension options. Subject to certain
conditions, the financing will be interest only and payable at an
annual interest rate of one month SOFR + 2.60%, subject to an
all-in interest rate floor of 2.70%. The Fund continues to evaluate
acquisition opportunities and proceeds from this financing will
provide liquidity to acquire additional multi-family or
single-family properties.
Eight at East
Eight consists of 22 garden-style buildings on a 32-acre site
comprised of one, two and three-bedroom suites. Currently, suites
feature 9' - 12' ceilings, wood vinyl plank flooring, custom
cabinets, quartz countertops, stainless steel appliances, USB
ports, walk-in shower, garden tub, full-size washer and dryer, and
upgraded nickel hardware, plumbing and lighting fixtures.
Amenities include a clubhouse with coffee bar, conference room,
a billiards and game room and a 24-hour fitness center. Additional
amenities include an extensive veranda area overlooking a
resort-style pool with cabanas, outdoor fireplace and fire pit, gas
grill barbecue areas, dog-park, conservation boardwalk, as well as
controlled access entry gates.
Upon completion of the acquisition, the Fund is planning to
retain The Bainbridge Companies ("Bainbridge") to property manage Eight.
Bainbridge is a fully integrated
owner, developer and manager of luxury multi-family communities in
the Eastern U.S. Bainbridge
currently manages almost 3,000 units for Starlight in Atlanta, Austin, Tampa
and Orlando, including the Fund's
Bainbridge Sunlake Apartments in Tampa,
FL.
Forward-looking Statements
This news release contains statements that may constitute
forward-looking statements within the meaning of Canadian
securities laws and which reflect the Fund's current expectations
regarding future events, including the ability to deploy the
remaining proceeds from the initial public offering and the
financial performance of the Fund and its properties, including the
impact of COVID-19 on the business and operations of the Fund and
Eight. Particularly, statements regarding future results,
performance, achievements, prospects or opportunities for Fund or
the real estate industry are forward-looking statements. In some
cases, forward-looking statements can be identified by terms such
as "may", "might", "will", "could", "should", "would", "occur",
"expect", "plan", "anticipate", "believe", "intend", "seek", "aim",
"estimate", "target", "project", "predict", "forecast",
"potential", "continue", "likely", "schedule", or the negative
thereof or other similar expressions concerning matters that are
not historical
facts.
The forward-looking statements in this news release involve
risks and uncertainties, including those set forth in the Fund's
materials filed with the Canadian securities regulatory authorities
from time to time at www.sedar.com. Actual results could differ
materially from those projected herein. Those risks and
uncertainties include, among other things, risks related to: the
acquisition and financing of Eight; the ability to deploy the
remaining proceeds from the initial public offering and any
refinancing; the impact of COVID-19 on the Fund's portfolio,
including Eight, as well as the impact of COVID-19 on the markets
in which the Fund operates and the trading price of the Fund's
listed units; the applicability of any government regulation
concerning the Fund's tenants or rents as a result of COVID-19;
reliance on the Fund's manager; the expected benefits of the
ownership of Eight; the property management of Eight; the
experience of the Fund's officers and directors; substitutes for
residential real estate rental suites; reliance on property
management; competition for real property investments and tenants;
and United States market
factors.
Information contained in forward-looking statements is based
upon certain material assumptions that were applied in developing
such forward-looking statements including management's perceptions
of historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances, including the following: the
overall financial performance of the Fund's portfolio including as
a result of the acquisition and financing of Eight; the ability to
deploy the remaining proceeds from the initial public offering and
any refinancing; the impact of COVID-19 on the Fund's portfolio,
including Eight, as well as the impact of COVID-19 on the markets
in which the Fund operates and the trading price of the Fund's
listed units; the applicability of any government regulation
concerning the Fund's tenants or rents as a result of COVID-19; the
ability of the manager of the Fund to manage and operate the Fund's
properties; the ability of the property managers selected to manage
the Fund's properties; the population of multi-family real estate
market participants; assumptions about the markets in which the
Fund operates; the global and North American economic environment;
foreign currency exchange rates; and governmental regulations or
tax laws. Readers are cautioned against placing undue reliance on
forward-looking statements. Except as required by applicable
Canadian securities laws, none of the Fund or its manager undertake
any obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
About Starlight U.S. Residential Fund
The Fund is a trust formed under the laws of Ontario for the primary purpose of indirectly
acquiring, owning, and operating a portfolio of income producing
multi-family and single family residential rental properties in the
U.S. residential real estate market located primarily in
Arizona, California, Colorado, Florida, Georgia, Idaho, Nevada, North
Carolina, Oregon,
South Carolina, Tennessee, Texas, Utah
and Washington. The Fund now has
interests in and operates a portfolio comprising interests in
1,437, Class "A" stabilized, income producing multi-family
residential suites located in Tampa,
Florida, Las Vegas, Nevada,
Austin, Texas and Raleigh, North Carolina, and 81 single-family
residential rental homes in Atlanta,
Georgia.
SOURCE Starlight U.S. Residential Fund