Vestin Realty Mortgage II, Inc. (VRM II) has formed two limited liability companies (LLCs) with Vestin Realty Mortgage I, Inc. (VRM I) and MVP REIT Inc. to acquire two parking facilities in a $4.3 million, all-cash acquisition.
One parking facility is located in Baltimore, MD and one parking facility is located in St. Louis, MO. The acquisition for both properties closed September 4, 2013.
This is the final acquisition in a $13.5 million portfolio consisting of six separate parking facilities. A copy of the purchase agreement can be found by clicking here.
The Baltimore property is a 6-story parking garage in the downtown Central Business District. The 86,520-square-foot, automated facility is beneath a 23-story office building at 208 Water St. The 240-parking space facility is surrounded by businesses and restaurants.
The St. Louis property is a 1.22-acre surface parking lot in the heart of the city center. The 55,153-square-foot lot has 179 parking spaces and is accessible by both eastbound and westbound traffic on Spruce Street. Located on the western portion of the St. Louis Central Business District, the property is a short distance from Scottrade Center, Busch Stadium, City Hall, the headquarters of the Metropolitan Police Department, and the St. Louis Public Library.
VRM II, VRM I and MVP REIT will hold a 51%, 44% and 5% interest, respectively, in the LLCs. The limited liability companies will be jointly managed by MVP Realty Advisors, LLC and Vestin Mortgage, LLC.
MVP REIT has the right, at any time, with ten days written notice, to purchase VRM II’s interest in the limited liability companies. The price for the Purchase Right is equal to the capital contribution plus a 7.5 percent annual cumulative return less any distributions.
In addition to the acquisition of St. Louis and Baltimore parking facilities, the entire $13.5 million, six parking facility portfolio included the acquisition of a Fort Lauderdale parking lot in late July, the acquisition of a parking lot in downtown Kansas City and two parking lots in downtown Memphis in late August.
Las Vegas-based Vestin Realty Mortgage II, Inc. is a publicly traded company that invests in commercial real estate loans and commercial real estate. As of June 30, 2013, Vestin Realty Mortgage II, Inc. had assets of approximately $34.9 million. Vestin Realty Mortgage II, Inc. is managed by Vestin Mortgage, LLC., a significant majority of which is owned by Michael Shustek. Since 1995, Vestin Mortgage has facilitated more than $2.0 billion in lending transactions.