BSR Real Estate Investment Trust said it has sold the 360-unit Mountain Ranch Apartments in Fayetteville, its lone remaining property in the region.
The sale price was $49.5 million. Little Rock-based BSR REIT said the sale price was a 27.2% increase in property asset value since BSR went public in May 2018. BSR paid $32.68 million for Mountain Ranch in February 2017.
According to Washington County property records, California-based Canyon View Capital, a privately held corporation that owns, manages, and operates $650 million of multifamily real estate, including numerous Arkansas assets, bought the property.
Mountain Ranch was the REIT’s last remaining property in the Northwest Arkansas market. A majority of BSR’s most recent acquisitions have been in high-growth Texas markets.
“The Northwest Arkansas market is strong,” stated John Bailey, BSR’s Chief Executive Officer.
“Reversion values continue to be attractive and, given our lack of scale there, it made sense to
continue to capitalize on the current market conditions, with a view to maximizing unitholder return. We will rotate this capital into BSR’s primary core markets as we have consistently done since our IPO.”
BSR REIT’s portfolio now comprises 7,844 apartment units in 29 investment properties, with 95% of Net Operating Income coming from strategic, high growth primary markets.
Since May 2018, BSR REIT has added 17 acquisitions totaling more than 5,200 apartment units. The group has disposed of 36 properties totaling 7,192 apartment units.
Shares of BSR REIT (HOM-U.TO) were trading at $11.20 on Wednesday morning. The stock has traded between a low of $8.90 per share and a high of $11.50 per share over the last 52 weeks.