Subsidiaries of Philadelphia, PA-based Resource Real Estate Opportunity REIT Inc have acquired, or are set to acquire, multifamily communities located in Florida and Texas for a combined price of $69.5 million.
The first property, in Montgomery County, Texas, is a multifamily community with 271 units on 15.3 acres with amenities including a swimming pool, clubhouse, fitness center, business center, and picnic area. The property was constructed in 1981 and was 95 percent leased at the time of acquisition.
The contract purchase price for the Montgomery County property is $27.2 million, excluding closing costs. The purchase price represents a 13 percent discount to the buyer’s estimated replacement cost of the property if built today.
The second acquired property is Nob Hill in Orange County, FL, a multifamily community with 192 units on 10.3 acres with amenities including a clubhouse, swimming pool, fitness area, tennis courts and shuffleboard courts. Nob Hill was constructed in 1969 and was 83 percent leased at the time of acquisition.
The contract purchase price for Nob Hill was $10.1 million, excluding closing costs, a 35 percent discount to the REIT’s estimate of the replacement cost of Nob Hill if built today.
Resource Real Estate Opportunity REIT Inc intends to make certain renovations to Nob Hill, including the club house, replace some of the roofs, windows, and HVAC units, perform interior repairs and unit upgrades, install an access gate, and repair the parking lot, sidewalks, breezeways, stucco façade, balconies, railings, and fences.
The operating partnership of Resource Real Estate Opportunity REIT Inc has also entered into an agreement to purchase a multifamily community located in Collin County, TX with over 400 units. Amenities include five swimming pools, tennis and racquetball courts, a clubhouse, a fitness center, a playground and carports.
The purchase price of the Collin County Property is approximately $32.2 million plus closing costs.
The Collin County Property encompasses approximately 355,000 rentable square feet. It was constructed in 1984 and is currently 93% leased.