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NexPoint Residential Trust completes the sale of Timber Creek in Charlotte, N.C.
Transactions - DECEMBER 18, 2023

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NexPoint Residential Trust completes the sale of Timber Creek in Charlotte, N.C.

by RELEASED

NexPoint Residential Trust announced the closing of the sale of Timber Creek in Charlotte, N.C., a 352-unit property built in 1984. The property was acquired for $22.8 million in September 2014, and the company completed an extensive repositioning and value-add initiative, improving the common area amenities and a significant portion of the unit interiors.

As of Dec. 13, 2023, the property was 95.17 percent leased, with a weighted average effective monthly rent of approximately $1,202. Net proceeds from the sale were approximately $24.5 million, delivering a trailing nominal tax and insurance adjusted cap rate of 5.01 percent, a 25.80 percent levered internal rate of return and a 4.45x multiple on invested capital, each of which well exceeded expectations.

The company used the net proceeds from the sale to make a $17 million paydown on the company's corporate credit facility on Dec. 15, 2023, continuing the company's strategic deleveraging and balance sheet improvement

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