RRE Opportunity REIT Earns $10.7 Million on Second Sale in Two Weeks

Non-traded real estate investment trust Resource Real Estate Opportunity REIT (Opportunity REIT) successfully disposed of its second property in two weeks.

Opportunity REIT sold Cityside Crossing, a 360-unit multifamily property, earning a $10.7 million profit, which resulted in a 28.4 percent average annual return.

The Houston, Texas property was acquired by the REIT in December 2012 and underwent Resource Real Estate’s (Opportunity REIT’s sponsor) value add strategy which includes professional management and investments in property improvements.

“The strong returns generated by the Opportunity REIT’s sale of Cityside Crossing is a direct result of RRE’s deft, professional management capabilities that significantly improved the financial performance of this asset,” commented Kevin Finkel, President and COO of the Opportunity REIT.

The property’s value also benefited from a nearby development.

Finkel added, “In addition, we acquired Cityside Crossing knowing that the new Palm Center Transit Center, located immediately adjacent to Cityside Crossing and the terminal station for the Metrorail’s new Southeast Line, would add significant value to the property.”

Just last week Opportunity REIT sold another Houston-based multifamily property for a profit of $11.9 million. The Redford Apartments were purchased in March 2012 and consist of 856 units.

Opportunity REIT closed its public offering in December of 2013.