Today, the Resource Real Estate Opportunity REIT, Inc. (the “Company”), a real estate investment trust sponsored by Resource Real Estate, Inc. (“Resource Real Estate”), a national real estate firm specializing in opportunistic and value-add investing in, and financing of, commercial real estate assets with a particular emphasis on multifamily properties, announces that it has purchased two properties in Houston, TX.
The Company continues to capitalize on approximately $2 trillion in commercial real estate debt that is maturing over the next five years. Two of the Company’s most recent purchases include Skyview at Palm Center (“Skyview”) and Flagstone Gardens Apartments (“Flagstone”), each located in Houston, TX. Constructed in 2000, Skyview is a 360-unit multifamily residential community comprised of 418,500 rentable square feet spread across 30 buildings and situated on 15.3 acres. The REO (Real Estate Owned) asset was purchased December 20, 2012.
In addition, Flagstone built in 1978, is a 292-unit multifamily residential community consisting of over 229,000 rentable square feet throughout 18 buildings and situated on 10.7 acres. The REO asset was purchased on December 21, 2012. The Company anticipates deploying capital to repair, upgrade and reposition these assets in the Houston, TX marketplace over the next 18-24 months. Capital is expected to be used to upgrade unit interiors as well as the exterior of the property and to market it within the community once construction has been completed.
Prior to the purchase of the Houston properties, the Company acquired the Park Forest Apartments in Oklahoma City, Okla. and the Foxwood Apartments in Memphis, Tenn. Each property was a Real Estate Owned (REO) asset, meaning they were foreclosed upon and bank owned, and were purchased by the Company in December 2012. Park Forest was acquired for $2.05 million and Foxwood for $2.27 million.On November 15, 2012, the Company announced a cash distribution of $0.075 per share and a stock distribution of 0.0075 shares of common stock per share, or 0.75 percent of each outstanding share of common stock, for stockholders of record as of the close of business on December 31, 2012. The Company expects to pay both distributions on January 15, 2013.