TORONTO - Milestone Apartments REIT said Monday it has purchased an apartment complex in Colorado for US$40.5 million.
The Canyon Chase complex, located in Westminster just outside of Denver, is comprised of 358 garden-style units. It was built in 1986 and currently has an occupancy rate of 96.6 per cent.
Milestone said it negotiated a seven-year fixed-term mortgage of approximately US$22.3 million at an interest rate of 3.66 per cent and will pay for the balance of the complex by drawing on the REIT's US$50 million revolving credit facility.
The trust said purchase price is based on an estimated initial capitalization rate of 6.55 per cent.
The acquisition is expected to close by July 31, 2013.
Milestone Apartments REIT has a portfolio of 53 multifamily garden-style residential properties, comprising of 17,290 units located in southwestern and southeastern U.S.
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