This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Trade Street Residential Redeems Noncontrolling Interests And Secures $25.8 Million Loan Commitment

Stocks in this article: TSRE

AVENTURA, Fla., May 28, 2013 /PRNewswire/ -- Trade Street Residential, Inc. (the "Company"), a fully integrated owner and operator of high-quality apartment communities in targeted growth markets in the southeastern United States, including Texas, today announced the redemption of the noncontrolling interests in four of its property-owning subsidiaries for total consideration of approximately $7.7 million.  The noncontrolling interests were subject to interest rates at an average annual rate of 10.5%, plus additional monthly charges.

In addition, the Company has secured a commitment for a new 12-year $25.8 million first mortgage loan secured by Point at Canyon Ridge, a 494-unit apartment community located in Sandy Springs, Georgia.  The loan is expected to have a fixed interest rate of 4.1% per annum with two years of interest only payments, followed by principal and interest payments based on a 30-year amortization schedule thereafter.  The loan is expected to close on May 31, 2013, subject to customary closing conditions.

"We are pleased to announce these completed and anticipated financing transactions as we execute our strategy to increase the flexibility of our balance sheet, and begin to improve our cost of capital," stated Michael Baumann, Chairman and Chief Executive Officer of the Company.  "Once completed, we anticipate the net benefit of these transactions will reduce our annual interest costs by approximately $1.3 million, which will improve our financial position and provide greater flexibility as we consider incremental opportunities to grow our portfolio in the future."

After redemption of the noncontrolling interests, the Company now owns 100% of the interests of the property-owning subsidiaries that own The Beckana on Glenwood, a 254-unit apartment community located in Raleigh, North Carolina, Merce Apartments, a 114-unit apartment community located in Addison, Texas, Park at Fox Trails, a 286-unit apartment community located in Plano, Texas and Terrace at River Oaks, a 314-unit apartment community located in San Antonio, Texas.  The Company funded the redemption of these noncontrolling interests from proceeds of its recent public offering of its common stock.  Proceeds from the new mortgage loan secured by Point at Canyon Ridge will be used to repay a $26.4 million 6.0% first mortgage loan, secured by the property, maturing on May 31, 2013.    

About Trade Street Residential, Inc. Trade Street Residential, Inc. (TSRE) is a full service, vertically integrated, self-administered and self-managed real estate investment trust focused on acquiring, owning, operating and managing conveniently located, garden-style and mid-rise apartment communities in mid-sized cities and suburban submarkets of larger cities primarily in the southeastern United States, including Texas. 

Forward-Looking Statements  This press release contains forward-looking statements within the meaning of the federal securities laws, including statements related to the offering and the expected use of the net proceeds therefrom, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases, which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact the Company's future results, performance or transactions, see the section entitled "Risk Factors" in the Company's final prospectus relating to the Company's recent public offering of its common stock.

SOURCE Trade Street Residential, Inc.

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs