Starlight U.S. Multi-Family (No. 5) Core Fund — managed by Starlight Investments — has sold the property located at 9005 Post Canyon Lane, a class A, garden-style apartment community located in Charlotte, N.C. The property consists of 176 apartment suites.
Pursuant to a purchase and sale agreement, Belle Haven Acquisition LLC, an indirect wholly owned subsidiary of the fund, sold Belle Haven unencumbered for the purchase price of approximately $28.25 million.
“The sale of Belle Haven represents an opportunity to redeploy the fund’s capital into a larger asset that will provide the fund with better economies of scale and enhanced returns,” explained Evan Kirsh, the fund’s president. “The transaction is another example of the fund executing its business plan to sell targeted properties on a tax-deferred basis and utilize the proceeds to enhance unit holder value.”
The proceeds from the sale will be used to repay the outstanding mortgage balance of approximately $17.8 million, with the remainder expected to be utilized on a tax-deferred basis for the acquisition of a property with a greater number of apartment units, creating operational economies of scale, which is expected to improve growth opportunities for net operating income.