NexPoint Residential Trust announced the closing of the sale of Old Farm in Houston, a 734-unit property built in 1996. The property was acquired for $84.7 million on Dec. 29, 2016, and has provided consistent operational and cash flow performance for the portfolio for the last seven-plus years. As of March 1, 2024, the property was 91.41 percent leased with a weighted average effective monthly rent of approximately $1,307.
Net proceeds from the sale were approximately $49.4 million, delivering a trailing nominal tax and insurance adjusted cap rate of 5.36 percent, a 22.14 percent levered internal rate of return and 2.98 times multiple on invested capital, each of which well exceeded expectations. The company will use a portion of the net proceeds from the sale to make a $24 million paydown on the company's corporate credit facility on March 5, 2024, continuing the company's strategic de-leveraging and balance sheet improvement initiatives. This repayment will take the drawn
