NexPoint Multifamily Capital Trust Acquires $39.6 Million Phoenix Multifamily Community
NexPoint Multifamily Capital Trust Inc., a publicly registered non-traded real estate investment trust, acquired its sponsor’s interest in the Estates on Maryland, a 330-unit multifamily community located in Phoenix, Arizona. Highland Capital Management, the REIT’s sponsor, owned an indirect 95 percent interest in the property, valued at approximately $39.6 million.
Built in 2000, the Estates on Maryland is a class A gated apartment complex situated on nearly 12 acres. The community features two pools, a clubhouse, fitness center, multimedia theatre, onsite storage, and a garage. Unit amenities include balconies, sunroom, washers/dryers, and newly renovated interiors. The property is currently 94.2 percent occupied with monthly rents averaging $930 per unit.
Highland Capital Management contributed its interests at the original cost of $39.6 million in exchange for 434,782.61 shares of the REIT’s class A common stock, at a value of $9.20 per share. The REIT transferred the interests to NexPoint Multifamily Operating Partnership, its wholly-owned operating partnership and subsidiary, in exchange for 434,782.61 units in the partnership.
NexPoint Multifamily Capital Trust paid its advisor a 1 percent acquisition fee.
Formally known as NexPoint Multifamily Realty Trust, the REIT commenced its $1.1 billion offering in August 2015. On March 24, 2016, an affiliate of the advisor contributed $2 million and the company broke escrow. To date, the company has raised $2.2 million.
