PHILADELPHIA — Independence Realty Trust Inc. (NYSE: IRT) has agreed to acquire a nine-property multifamily portfolio for $228.1 million. The portfolio contains 2,353 units across the U.S. The seller was not disclosed.
This acquisition will allow IRT to further develop its presence in core markets like Atlanta, Indianapolis and Columbus, Ohio. It will also allow the REIT to enter two new markets, though further information regarding the assets’ locations was not disclosed.
IRT maintains a large multifamily portfolio in the South and Midwest, particularly in Arkansas, Georgia, Florida, Kentucky, Missouri, North Carolina, Oklahoma, Tennessee and Texas. Rents range from $455 per month at Raindance Apartments in Oklahoma City to more than $1,265 per month at Sabal Key in Naples, Fla.
The communities within the new portfolio were built or renovated between 2000 and 2011 and feature an average occupancy of 95 percent. Average effective rent per unit was $884 for the three months that ended July 31, 2017.
“This acquisition represents another key milestone for IRT, bolstering our current portfolio with a collection of high-quality communities located in amenity-rich, non-gateway markets that are core to our investment thesis,” says Scott Schaeffer, chairman and CEO of IRT. “This is a tremendous opportunity to increase our economies of scale and drive margin-enhancing operational efficiencies.”
“Additionally, we have identified value-add projects across the acquired communities that will enable us to replicate our proven redevelopment playbook, drive rent growth and ultimately deliver outsized returns on our investment.”
The transaction is expected to close in two stages. Five of the nine communities will close on or before Sept. 30, while the remaining four will close shortly after a debt assumption process is completed in the fourth quarter of 2017. All acquisitions are subject to customary closing conditions.
Philadelphia-based IRT is a REIT that owns and operates 55 multifamily apartment properties totaling 15,165 units across non-gateway U.S. markets. The trust aims to expand in markets with key amenity-rich submarkets that feature strong school districts, high-quality retail and major employment centers.
IRT’s stock price closed at $10.39 per share on Tuesday, Sept. 5, up from $10.02 one year prior.
— Nellie Day