BSR Real Estate Investment Trust announced Tuesday (Dec. 16) it has acquired Vale Luxury Apartments in the Houston, Texas metropolitan statistical area and Satori Frisco Apartments in the Dallas, Texas MSA for a total of $129 million.
Vale is a newly constructed garden-style community consisting of 350 apartment units and is currently in the lease-up phase.
The community includes multiple amenities including a resort-style swimming pool, drive-through mail kiosk, fitness center, dog park, car care center and direct garage/ground floor entry for every apartment unit. Vale is already 55.1% leased and is expected to be accretive to BSR’s adjusted funds from operations on a per unit basis as lease-up continues.
Satori Frisco is a garden-style community consisting of 330 apartment units constructed in late 2019. Its features include attached direct access garages, a resort-style swimming pool, two story fitness center, car care center, dog park, granite countertops and a private access gate. Satori Frisco is currently 91.5% leased and is expected to be immediately accretive to BSR’s adjusted funds from operations on a per unit basis.
“The purchase of Vale and Satori Frisco is a clear example of our portfolio enhancement growth strategy and capital recycling program at work,” stated John Bailey, BSR’s Chief Executive Officer.
“BSR recently exited the smaller Beaumont and Longview, Texas markets and also sold noncore properties in other markets. We are now using our strong liquidity position to invest in Vale and Satori Frisco, modern communities in core growth markets with the amenities our residents desire. Our ability to execute on BSR’s plan to increase shareholder value has been on full display during the fourth quarter,” Bailey added.
BSR has been disposing of older apartment units in its portfolio in the fourth quarter of 2020.