Cottonwood Multifamily REIT II Inc., a Regulation A+ real estate investment trust, through a joint venture with affiliate Cottonwood Residential O.P. LP, has acquired a 90 percent interest in Heights at Meridian, a multifamily apartment community located in Durham, North Carolina.
The joint venture purchased the property from Cottonwood Residential Inc., a general partner of Cottonwood Residential O.P., for $64.5 million. The REIT’s commitment is $58 million.
Situated on 54.7 acres, Heights at Meridian is a 339-unit complex comprised of six, three-story residential buildings with approximately 338,000 square feet of living space and nine common area buildings. Property amenities include a swimming pool with grilling stations, fitness center, clubhouse, business center, and car care center.
The acquisition was financed with a $33.8 million loan from Berkadia Commercial Mortgage LLC that has an interest-only term of 7 years, and bears interest at a fixed annual rate of 4.62 percent.
Cottonwood Multifamily REIT II primarily invests in properties located in major metropolitan areas across the U.S. that have, in the opinion of the board of directors, attractive investment dynamics for property owners. These include population growth, active employment centers, and strong renter demographics.
The REIT partners with Cottonwood Residential, a fully-integrated owner/operator of multifamily properties with approximately $1.7 billion in total assets. Established in 2009, Cottonwood has ownership interests or structured investment interests (including development projects) in approximately 14,600 apartment units in 13 states.
In August 2018, Cottonwood Multifamily REIT II fully subscribed its $50 million offering with no upfront fees.