UDR Lassos Five Texas Rental Communities for $401.9M
UDR has gone big in Texas. It acquired five properties totaling 1,753 units in the Dallas and Austin metros for $401.9 million. They include:
The Flats at Palisades in Richardson.
Central Square at Frisco in Frisco.
Estancia Villas in Austin.
Villaggio in Mansfield.
Palo Verde in Austin.
Multifamily Dive reports the publicly traded REIT said during its second quarter earnings news release, that UDR funded the purchase with $172.5 million of its operating partnership units, which are equivalent to REIT shares, issued at $47.50 per unit; $20 million in cash; and the assumption of $209.4 million of below-market debt at an average coupon rate of 3.8% with an average of 6.3 years to maturity.
“When you look at that [interest rate] relative to the market today in the low 5’s, we’ve got six-plus years of 150-basis-point advantage on that debt, which if you think about a debt for market value it translates into about a 25 basis point benefit in terms of asset pricing,” Said UDR’s Joe Fisher.
Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.