– Portfolio Expanded and Debt Maturities Extended – – Executive Management Team Strengthened –
- Added two new Class A communities to the portfolio. In May, the Company purchased St. James at Goose Creek, a 244-unit apartment community in Charleston, South Carolina, for $27.2 million, and Woodfield Creekstone, a 256-unit apartment community, located in Durham, North Carolina, for $35.8 million. In June, the company sold Oak Reserve at Winter Park, a 41-year old, 142-unit apartment community located in Winter Park, Florida, for $11.8 million. Net of these acquisitions and the disposition, the Company lowered the average age of its portfolio to 20 years as of the date of this release.
- Obtained $44.8 million of long-term fixed rate secured debt, and repaid $36.1 million of 2013 debt maturities. In May, the Company obtained a new $25.8 million first mortgage loan, which is secured by Pointe at Canyon Ridge, a 494-unit apartment community in Sandy Springs, Georgia. The 12-year loan has a fixed 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. Proceeds were used to repay a $26.4 million 6.0% first mortgage loan at maturity. In June, the Company placed a new $19.0 million first mortgage loan, which is secured by St. James at Goose Creek. The 10-year loan has a fixed rate of 3.75% per annum with two years of interest-only payments followed by principal and interest payments based on a 30-year amortization schedule. As a result of these financings and the sale of Oak Reserve at Winter Park, the Company has extended the weighted average term-to-maturity for its non-credit line debt from 4.4 years at March 31, 2013 to 7.1 years as of the date of this release, and increased its percentage of fixed rate debt from 42% to 66%, during the same period.
- Consolidated ownership in four properties by repaying high-cost noncontrolling interests. In May, the Company repurchased noncontrolling interests in four property-owning subsidiaries for total consideration of $7.7 million, thus eliminating this high-cost liability. The interest expense for these noncontrolling interests in the first quarter of this year was approximately $562,000. The Company now owns 100% of The Beckanna on Glenwood, a 254-unit apartment community in Raleigh, North Carolina, Merce Apartments, a 114-unit apartmen t community in Addison, Texas, Park at Fox Trails, a 286-unit apartment community in Plano, Texas, and Terrace at River Oaks, a 314-unit apartment community in San Antonio, Texas.
- Strengthened our executive team. On July 22, 2013, the Company named David Levin as Vice Chairman of the board of directors and President to oversee the Company's investment and capital strategy. Mr. Levin served as the lead independent director of the board of directors and was formerly the Vice Chairman of LNR Property LLC.