Publications

Transactions - DECEMBER 18, 2023

To read this full article you need to be subscribed to Newsline.

Sign in Sign up for a FREE subscription

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

Forgot your username or password?