A real estate investment trust in Little Rock has closed on the purchase of a Springdale multifamily development for $28.9 million.
BSR REIT, a publicly traded multifamily management company, is the new owner of the 237-unit Towne Park at Har-Ber Apartments.
The transaction was funded utilizing BSR’s revolving credit facility.
Orchard Properties of Fayetteville was the seller. Towne Park was built in two phases in 2016 and 2017 and is comprised of one- two- and three-bedroom apartments and townhomes.
The property is BSR’s second purchase in Northwest Arkansas in just under two years, following the acquisition of Mountain Ranch Apartments, a 360-unit garden-style complex in Fayetteville.
The Towne Park acquisition puts BSR over the 10,000 mark on owned and operated units, and caps a 16% portfolio growth in the past 2 ½ years. It now owns 49 multifamily garden-style residential properties consisting of 10,116 apartment units in Arkansas, Louisiana, Mississippi, Oklahoma and Texas.
“We are thrilled to add Towne Park to our portfolio,” said John Bailey, chief executive officer of the REIT. “This acquisition increases our exposure to the fastest growing market in our home state of Arkansas and is consistent with our strategy of clustering properties to maximize operating efficiencies.”
According to BSR, average multifamily lease prices in Northwest Arkansas have increased 18% over the past four years. Multifamily vacancy rates in the region currently sit at 3.9%, representing a decrease of 260 basis points over the past four years.
BSR formed six years ago as the result of a merger between Bailey Properties of Little Rock, which traces its roots back to the formation of Bailey Corp. in 1956, and Summit Housing Partners of Montgomery, Ala.
The company became Arkansas’ newest publicly traded firm earlier this year after completing a successful initial public offering (IPO) on the lesser known Toronto Stock Exchange (TSX).