NexPoint Residential Trust closed on the sale of Old Farm in Houston, a 734-unit property built in 1996. The property was acquired for $84.7 million in 2016. As of March 1, 2024, the property was 91.41% leased with a weighted average effective monthly rent of approximately $1,307.

Net proceeds from the sale were approximately $49.4 million, delivering a trailing nominal tax and insurance adjusted cap rate of 5.36%, a 22.14% levered internal rate of return and a 2.98x multiple on invested capital. The Company will use a portion of the net proceeds from the sale to make a $24 million paydown on the Company’s corporate credit facility, continuing the Company’s strategic de-leveraging and balance sheet improvement initiatives.

“NXRT is pleased to announce the closing of Old Farm, which allows us to deliver a strong return on a 7-year investment, creates almost $50 million of liquidity for the Company and pays off our most expensive debt capital, a long-stated goal,” said the company’s Matt McGraner.

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