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RREEF Property Trust Buys Georgia Student Housing Property for $27 Million

RREEF Property Trust Inc., a publicly registered non-traded daily NAV real estate investment trust, purchased The Flats at Carrs Hill in Athens, Georgia for $27 million, exclusive of closing costs. The seller is Flats at Carrs Hill LP, an unaffiliated Florida limited partnership.

Built in late 2013, the Class A, 135,896-square-foot student housing apartment building consists of 138 units with 316 beds and offers 304 parking spaces, of which 115 are covered. Located at 592 Oconee Street, the property is one-quarter of a mile to the University of Georgia campus and walking distance to coffee shops, bookstores, restaurants and bars. Community amenities include a full-size indoor basketball court, multiple lounges, a 24-hour fitness center and a pool. The Flats at Carrs Hill was 100 percent leased for the 2014-2015 school year and is 100 percent pre-leased for the 2015-2016 school year.

Additionally, UGA recently approved an expansion of the North Oconee River Greenway trail, a 3.7 mile walking and biking path, which will provide the student residents direct pedestrian access to additional parts of campus.

RREEF Property Trust funded the acquisition, including closing costs, almost exclusively with $27 million from the company’s credit facility with Wells Fargo Bank NA. Of the $27 million borrowed, approximately $13.6 million is from existing borrowing capacity on previously acquired properties, while the remainder is allocated to the property. The credit facility bears interest at a variable annual rate equal to the one-month LIBOR rate plus 1.7 percent, payable monthly, which equated to approximately 1.9 percent at the time of acquisition for these borrowings.

The company has engaged D.P. Preiss Company Inc. as the property manager.

RREEF Property Trust is a publicly registered, non-traded, daily NAV real estate investment trust invests in commercial real estate, publicly-traded real estate securities, and real estate-related debt and cash and cash equivalents. The company’s portfolio consists of six properties with a combined loan-to-cost ratio of approximately 51 percent.