A subsidiary of KBS Legacy Partners Apartment REIT Inc. has entered into an agreement to acquire The Lofts at the Highlands, an apartment complex containing 200 apartment units on approximately 2.8 acres of land in St. Louis, Missouri, for $42 million.
Constructed in 2006, The Lofts at the Highlands encompasses 246,612 rentable square feet and is currently 83% occupied. The purchase price is subject to an increase or decrease of up to $500,000 based on performance of the property prior to closing, plus closing costs.
KBS intends to fund the purchase of the Lofts at the Highlands through the assumption of an existing U.S. Government Housing and Urban Development insured mortgage loan and with proceeds from its public offerings.
The Lofts at the Highlands Mortgage Loan has an outstanding principal balance of approximately $32.0 million and bears interest at a fixed rate of 3.4%, plus a 0.5% mortgage insurance premium per annum. Monthly payments of principal and interest are due through the maturity of the loan in August 2052.