/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
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TORONTO, April 27,
2022 /CNW/ - Starlight U.S. Multi-Family (No. 2)
Core Plus Fund (TSXV: SCPT.A) (TSXV: SCPT.U) (the "Fund")
announced today that, further to its initial announcement dated
March 31, 2022, it has completed the
refinancing ("Refinancing") of Hudson at East and acquired a Class "A"
institutional quality multi-family property completed in 2002 and
located in Raleigh, North Carolina
(the "Property"). The US$106.0
million purchase price was satisfied with cash proceeds from
the Refinancing and new debt of approximately US$87.9 million, including US$81.5 million of initial funding and
US$6.4 million of future funding for
capital expenditures. The debt will be interest only and as at
April 27, 2022 carries a blended rate
of 3.92% and a blended term of approximately three years.
The Property is located at 10311 Falls Mill Drive and is
comprised of 320 one, two and three-bedroom multi-family
residential suites in 11 garden-style four-storey buildings on a
16-acre site. Amenities include a resident clubhouse, business
centre, movie theatre room, package room, a 24-hour fitness centre,
resort-style pool, large summer seating areas with barbeques, a
playground, and a dog park. Suites feature nine-foot ceilings,
large floor plans, granite countertops, washer and dryer, private
balcony, and stainless-steel appliances.
"We are pleased to add another
high-quality apartment community to the Fund. The Property is well
situated in one of the most dynamic markets in the United States and will help to further
geographically diversify the Fund's class "A" portfolio," explained
Evan Kirsh, President, Starlight
U.S. Multi-Family (No. 2) Core Plus Fund.
The Fund has retained High 5 Residential ("High 5") to
property manage the Property. High 5 currently manages
approximately 2,100 units for Starlight U.S. Residential in
Raleigh, North Carolina and
Nashville, Tennessee.
Forward-looking Statements
This news release contains statements that may constitute
forward-looking statements within the meaning of Canadian
securities laws and which reflect the Fund's current expectations
regarding future events, the financial performance of the Fund and
its properties, including the impact of COVID-19 on the business
and operations of the Fund and the Property. Particularly,
statements regarding future results, performance, achievements,
prospects or opportunities for Fund or the real estate industry are
forward-looking statements. In some cases, forward-looking
statements can be identified by terms such as "may", "might",
"will", "could", "should", "would", "occur", "expect", "plan",
"anticipate", "believe", "intend", "seek", "aim", "estimate",
"target", "project", "predict", "forecast", "potential",
"continue", "likely", "schedule", or the negative thereof or other
similar expressions concerning matters that are not historical
facts.
The forward-looking statements in this news release involve
risks and uncertainties, including those set forth in the Fund's
materials filed with the Canadian securities regulatory authorities
from time to time at www.sedar.com. Actual results could differ
materially from those projected herein. Those risks and
uncertainties include, among other things, risks related to: the
impact of COVID-19 on the Fund's portfolio, including the Property,
as well as the impact of COVID-19 on the markets in which the Fund
operates and the trading price of the Fund's listed units; the
applicability of any government regulation concerning the Fund's
tenants or rents as a result of COVID-19; reliance on the Fund's
manager; the expected benefits of the ownership of the Property;
the property management of the Property; the experience of the
Fund's officers and directors; substitutes for residential real
estate rental suites; reliance on property management; competition
for real property investments and tenants; and United States market factors.
Information contained in forward-looking statements is based
upon certain material assumptions that were applied in developing
such forward-looking statements including management's perceptions
of historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances, including the following: the
overall financial performance of the Fund's portfolio including as
a result of the acquisition and financing of the Property; the
impact of COVID-19 on the Fund's portfolio, including the Property,
as well as the impact of COVID-19 on the markets in which the Fund
operates and the trading price of the Fund's listed units; the
applicability of any government regulation concerning the Fund's
tenants or rents as a result of COVID-19; the ability of the
manager of the Fund to manage and operate the Fund's properties;
the ability of the property managers selected to manage the Fund's
properties; the population of multi-family real estate market
participants; assumptions about the markets in which the Fund
operates; the global and North American economic environment;
foreign currency exchange rates; and governmental regulations or
tax laws. Readers are cautioned against placing undue reliance on
forward-looking statements. Except as required by applicable
Canadian securities laws, none of the Fund or its manager undertake
any obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
About Starlight U.S. Multi-Family
(No. 2) Core Plus Fund
The Fund is a limited partnership formed under the Limited
Partnerships Act (Ontario) for the
primary purpose of indirectly acquiring, owning and operating a
portfolio of income producing rental properties in the United States multifamily real estate
market. Following the acquisition, the Fund will
have interests in and operate
a portfolio comprising 995, Class "A"
stabilized, income producing multi-family residential suites
located in Denver, Colorado,
Orlando, Florida and Raleigh, North Carolina.
SOURCE Starlight U.S. Multi-Family (No. 2) Core Plus Fund