KBS Legacy Partners Apartment REIT (KBS Legacy) announced yesterday the acquisition of a 240-unit apartment community located in Concord, North Carolina. The public non-traded REIT is a joint venture sponsored by KBS Capital Advisors, LLC and Legacy Partners Residential Realty, LLC. The company purchased the complex for $28 million.
The apartment community, Legacy Grand at Concord, is 283,783 square feet and 91% occupied. The Class-A property, built in 2010, sits on 18.37 acres and is comprised of 17 residential buildings. It is located in the Charlotte Metropolitan Service Area.
“We believe the Legacy Grand at Concord acquisition represents a Class-A core investment for KBS Legacy Partners Apartment REIT,” commented W. Dean Henry, chief executive officer of KBS Legacy. “The Charlotte region offers potential for growth with a workforce benefitting from its proximity to 26 nearby colleges.”
According to a filing, KBS Legacy funded the acquisition through the assumption of an existing U.S. Housing and Urban Development Section 221d(4) loan that currently has a balance of $23.2 million and proceeds from its public offering. The loan matures on December 1, 2050 and has a fixed interest rate of 4.05%. Monthly payments include principal and interest in the sum of $101,159. The loan may be paid in full or in part, subject to certain conditions, and assumed wholly by a subsequent purchaser.
KBS Legacy focuses on acquiring high-quality, core apartment units throughout the U.S. As of September 30, 2013, the company owned 9 apartment complexes and had raised gross offering proceeds of $185.2 million. The offering is scheduled to close March 31, 2014.