Little Rock-based BSR Real Estate Investment Trust announced that it has acquired Broadstone Park West, a 370-suite, garden style residential community in Houston, Texas for $51 million from Starlight Investments.
The transaction was financed through a combination of a draw on BSR’s credit facility of approximately $40 million and the issuance of approximately $10.4 million of trust units of BSR at $12.25 per unit, net of prorations. Debt to gross book value is 49.8% and BSR has $54.5 million in liquidity after the purchase.
The addition of the Houston property is expected to be immediately accretive to BSR’s adjusted funds from operations on a per unit basis.
Broadstone was constructed in 2014 in the Houston metropolitan statistical area, the fifth largest MSA in the United States and home to 21 Fortune 500 companies. The property has numerous amenities including a clubhouse, fitness center, resort-style swimming pool with sun deck, garages, and a dog park.
BSR now owns 2,332 apartment units in the Houston MSA, where BSR has been operating for 20 years.
“The acquisition of Broadstone is another example of BSR growing according to our defined clustering strategy,” said John Bailey, BSR’s Chief Executive Officer. “Broadstone is an attractive asset with the newer amenities that our residents want. We will add value to the property by applying it to our internal management platform, as we have done with other properties acquired since our IPO.”
The purchase of Broadstone marks the 11th property acquisition for BSR since completing its initial public offering on the Toronto Stock Exchange in May 2018. BSR owns properties in Austin, Dallas-Fort Worth, Northwest Arkansas, and Oklahoma.
BSR Real Estate Investment Trust is an internally managed, unincorporated, and open-ended real estate investment trust. It trades publicly on the Toronto Stock Exchange.