MVP REIT Inc., a publicly registered non-traded real estate investment trust that invests primarily in parking facilities, has entered into a purchase agreement to buy two parking lots in Minneapolis, Minnesota for approximately $16 million in cash.
The first parking lot is located at 1022 Hennepin Avenue and consists of approximately 90,658 square feet and 270 parking spaces.
The second parking lot is located at 41 10th Street North and is comprised of approximately 107,952 square feet and 185 parking spaces.
MVP REIT anticipates entering into a lease with a parking operator.
It is anticipated that the purchase will close in first quarter of 2016, however, there can be no assurance when and if this acquisition will be completed. It is contemplated that MVP REIT will fund between $3 million to $4 million of the purchase price, if the acquisitions close, and may seek a joint venture partner, which could be an affiliate of MVP REIT, for the remaining purchase price for the two lots.
In other MVP REIT news, last week The DI Wire reported that the company entered into an agreement to purchase a parking lot in Milwaukee, Wisconsin, and Dan Huberty was hired as vice president of parking operations of MVP Realty Advisors LLC.
MVP REIT Inc.’s portfolio is comprised of 14 parking facilities located in eight states. As of August 11, 2015, the company has issued, 7,796,690 shares of common stock, including shares issued pursuant to the distribution reinvestment plan. The REIT’s offering is scheduled to conclude on September 25, 2015.