IRET - IRET Announces Minneapolis Investment Activity
MINNEAPOLIS, March 11, 2020 /PRNewswire/ -- IRET (NYSE: IRET) today announced it has acquired Ironwood Apartments in New Hope, Minnesota, for an aggregate purchase price of $46.3 million. IRET had previously financed the development of Ironwood with a $16.6 million mezzanine note bearing interest at 6.0%. With 182 homes, Ironwood Apartments opened in 2019 and is located in New Hope, Minnesota, an inner-ring suburb of Minneapolis. Ironwood provides access to many major employment centers and major transportation corridors. The homes at Ironwood feature outstanding amenities at an attractive price point with average rents of $1,608.
Additionally, IRET recently acquired the minority interest in a joint venture that owns 71 France Apartments, a 241-unit, market-rate apartment community with 20,955 square feet of commercial retail space in Edina, Minnesota that was built in 2016. IRET paid $12.2 million in consideration for its partners' 47.4% ownership interest in the joint venture and now owns a 100% fee simple interest in the community. The property is subject to a $54.6 million mortgage. 71 France is centrally located within the highly desirable City of Edina, with good proximity to downtown Minneapolis, downtown St. Paul and the Minneapolis-St. Paul International Airport. The 71 France property features walkability and connectivity to upscale shopping and entertainment in the immediate area and is located along the Centennial Lakes walking paths and park.
"We're happy to continue to simplify our company and further demonstrate commitment to our strategy of deepened exposure to high-growth markets, including the Twin Cities, where our portfolio has grown to over 2,500 homes," said Mark O. Decker, Jr., IRET's President and CEO. "Together with the previously announced Nokomis Apartments construction and mezzanine loans, these investments will complete the leverage neutral redeployment of proceeds received from dispositions closed in Q4 of 2019 specified in our 2020 guidance."
About IRET
IRET is a real estate company focused on the ownership, management, acquisition, redevelopment, and development of apartment communities. As of December 31, 2019, we owned interests in 69 apartment communities consisting of 11,953 apartment homes. IRET's common shares and Series C preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: "IRET" and "IRET PRC," respectively). IRET's press releases and supplemental information are available on its website at www.iretapartments.com or by calling Investor Relations at 701-837-7104.
Contact Information
Jonathan Bishop
Vice President – Finance
Phone: 701-837-7104
E-mail: IR@iret.com
SOURCE IRET