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Resource Real Estate Opportunity REIT acquires the assets of another non-traded REIT

Resource Real Estate Opportunity REIT (Opportunity REIT), a non-traded REIT, has announced that it has completed the acquisition of properties from Paladin Realty Income Properties (Paladin), another non-traded REIT. The transaction was complete on January 28, 2014, according to the announcement made by Opportunity REIT today.

As a result of the merger, Opportunity REIT acquired 11 joint ventures that own a total of 10 multifamily communities and two office properties. The multifamily properties contain more than 2,500 rentable units while the office properties have more than 75,000 rentable square feet.

Opportunity REIT’s strategy involves acquiring non-performing real estate assets at deep discounts and then improving them in order to resell at a profit. The REIT paid Paladin $51.2 million, exclusive of closing costs, in exchange for its assets.

As part of the transaction, Opportunity REIT acquired a promissory note in the principal amount of $3.5 million issued by the co-venture partner of the Stone Ridge Apartments joint venture.

Chief Executive Officer of Resource Real Estate, Alan Feldman, commented, “We’re pleased to have successfully completed this complex transaction as part of the wind down of Paladin. This is a direct result of our diligence and focus on acquiring multifamily investments that can benefit from our extensive and experienced asset management platform. Paladin’s multifamily assets align well with over 26,000 apartment units currently managed by Resource Real Estate.”

Resource Real Estate, Opportunity REIT’s sponsor, is a firm that operates in three distinct areas. It deals with real estate investments, commercial real estate lending, and global real estate securities. It has sponsored multiple investments, including traded and non-traded REITs. Its Opportunity REIT closed to new investors December 13, 2013. Resource Real Estate has been in the business for over 20 years and currently owns and manages a portfolio with an aggregate value of more than $2.1 billion.