ROCHESTER, N.Y., Dec. 29, 2016 (GLOBE NEWSWIRE) -- Broadtree Residential (Broadtree), a private real estate investment trust (REIT) managed by Broadstone Real Estate, LLC (Broadstone), today announced the acquisition of “Somerset at the Crossings” (Somerset), a 264-unit multifamily community located in Tucker, Georgia, for a purchase price of $23.5 million. Broadtree acquired the community from the Atlanta-based, multifamily operator Cortland Partners. As part of the transaction, Broadtree assumed a $17.1 million Freddie Mac mortgage, which matures in 2023.
Built in 1987, the Somerset community is composed of 28 residential buildings. In aggregate, the buildings contain 50 one-bedroom units, 194 two-bedroom units, and 20 three-bedroom units, with an average size of approximately 1,114 square feet per unit. The pet-friendly community offers numerous attractive amenities, including a fitness center, dog park, playground, in-ground swimming pool, and ample parking. As of closing, the community is 94.7% occupied.
“We are thrilled to announce Broadtree’s purchase of Somerset at the Crossings, our second multifamily acquisition in the Atlanta area,” said Amy Tait, Broadstone’s Chairman and CEO. “Excellent amenities, a strong operating history, and a great location make this community a very attractive addition to the Broadtree portfolio. We look forward to announcing additional acquisitions as we grow our diversified residential income REIT.”
Tones Vaisey PLLC represented Broadtree on this transaction.
About Broadtree Residential:
Broadtree Residential is a private residential income REIT that holds a diversified, geographically dispersed portfolio of 662 single family homes, 528 multifamily units, and 4 other residential properties in Western New York; Florida; the Atlanta, Georgia area; the Greater Minneapolis, Minnesota area, Kentucky, and North Carolina.
Broadtree seeks residential property acquisitions via outright cash purchases and/or through UPREIT transactions. UPREIT transactions, (where “UPREIT” stands for Umbrella Partnership REIT), provide a tax deferred exit strategy for owners of real estate who might otherwise recognize a significant taxable gain in a cash sale of a highly appreciated property with a low tax basis. These transactions enable the property owner to exchange owned real estate for an interest in a professionally managed portfolio that is diversified by geography and property type.
Broadtree, which is externally managed by Broadstone, remains open for investment by accredited investors only, with a minimum initial investment of $100,000. Shares are offered via private placement. Please see certain important disclosures regarding Broadtree at broadstone.com/disclosures.
Accredited investors are invited to download an investor kit: Broadstone.com/S12