Prospect Capital
Corporation PSEC announced today that Prospect
has recently invested $144.5 million in four new transactions
encompassing 19 rent-producing multifamily residential properties
totaling 5,652 rental units and 5.66 million rentable square feet. In
combination with prior multifamily residential investments, Prospect
has in the aggregate invested $288.3 million in ten separate
transactions encompassing 25 multifamily residential properties with
9,168 rental units and 9.11 million rentable square feet.
Prospect structures its multifamily investments as an investment of
debt and equity into Prospect's controlled portfolio company APH
Property Holdings, LLC ("APH"), which owns a private real estate
investment trust ("REIT"). This REIT works with multiple operating
managers and co-investors to close and manage multifamily residential
property acquisitions. Prospect may set up other REITs in the future
to house its real-estate-related investments in a tax efficient
manner. The four recently closed transactions include the acquisition
of a single property, Bexley Apartment Homes ("Bexley"), as well as
the acquisition of three multifamily property portfolios called
Oxford, Gulf Coast, and Stonemark.
The Oxford portfolio consists of six multifamily residential rental
properties located in Atlanta, Charlotte, Dallas, and Orlando. The
properties were constructed between 1983 and 2001 and together
consist of 2,271 units encompassing 2.18 million rentable square
feet. Our operating manager and co-investor in this transaction is
McDowell Properties, a firm whose principals have decades of
experience acquiring and managing multifamily residential properties
nationwide.
The Gulf Coast portfolio consists of six residential rental
properties located in Birmingham, Mobile, Pensacola, and Tallahassee.
The properties were constructed between 1971 and 1999 and together
consist of 1,537 units encompassing 1.56 million rentable square
feet. Our operating manager and co-investor in this transaction is
Providence Management Company, a firm with a 27-year history of
acquiring and managing multifamily residential properties,
particularly in the southeast.
The Stonemark portfolio consists of six residential rental properties
located in Atlanta. The properties were constructed between 1999 and
2004 and together consist of 1,350 units encompassing 1.46 million
rentable square feet. Our operating manager and co-investor in this
transaction is GoldOller Real Estate Investments, a firm whose
principals have decades of experience acquiring and managing
multifamily residential properties nationwide.
Bexley is a residential rental property located in Marietta, Georgia.
The property was constructed in 1988 and consists of 494 units
encompassing 461,890 rentable square feet. Our operating manager and
co-investor in this transaction is the Carroll Organization, a firm
with a nine-year history of acquiring and managing multifamily
residential properties, particularly in the southeast.
"These multifamily investments continue Prospect's strategy of
selectively acquiring stabilized properties in conjunction with
highly regarded multi-family real estate management companies at a
fraction of replacement cost in markets with limited new construction
pipelines and positive demographic and economic trends," said Ted
Fowler, Managing Director of Prospect Capital Management LLC. "These
rent-producing properties generate attractive current yields (with
long-term fixed rate financing), long-term capital appreciation
potential, inflation-protecting income streams, and diversification
across geography, construction vintage, and operating manager. We are
actively screening new investment opportunities in real estate and
beyond with a focus on businesses that produce recurring and stable
cash flow streams that we can distribute to our shareholders."
With more than $5.5 billion of assets and committed capital across
more than 130 portfolio companies, Prospect is one of the largest and
most diversified companies in the business development company peer
universe. Prospect's diversified yield strategies include private
equity sponsor finance, non-sponsor direct lending,
Prospect-sponsored recapitalizations, structured credit investments,
and real estate investments. Prospect examines all industries as part
of its investment review.
Prospect has closed more than $2.4 billion of new originations to
date during the current calendar year, with further origination
activity expected in the rest of December and the coming months.
Prospect closed approximately $2.9 billion of originations in the
twelve months ended September 30, 2013.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a closed-end
investment company that lends to and invests in private and microcap
public businesses. Our investment objective is to generate both
current income and long-term capital appreciation through debt and
equity investments.
We have elected to be treated as a business development company under
the Investment Company Act of 1940 ("1940 Act"). We are required to
comply with a series of regulatory requirements under the 1940 Act as
well as applicable NASDAQ, federal and state rules and regulations.
We have elected to be treated as a regulated investment company under
the Internal Revenue Code of 1986. Failure to comply with any of the
laws and regulations that apply to us could have an adverse effect on
us and our shareholders.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
whose safe harbor for forward-looking statements does not apply to
business development companies. Any such statements, other than
statements of historical fact, are highly likely to be affected by
other unknowable future events and conditions, including elements of
the future that are or are not under our control, and that we may or
may not have considered; accordingly, such statements cannot be
guarantees or assurances of any aspect of future performance. Actual
developments and results are highly likely to vary materially from
any forward-looking statements. Such statements speak only as of the
time when made, and we undertake no obligation to update any such
statement now or in the future.
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