CENTERSPACE ANNOUNCES ENTRANCE INTO FORT COLLINS MARKET

Rhea-AI Summary

Centerspace enters Fort Collins market and exits Minot market through recent transactions.

Positive

• Centerspace has closed on the acquisition of Lake Vista Apartment Homes in Loveland, CO, for an investment of $94.5 million, including assumption of $52.7 million mortgage debt at a rate of 3.45%.
• Fort Collins MSA offers a diverse economic base and plentiful outdoor amenities.
• Centerspace has sold four apartment communities in Minot, ND, for $82.5 million, using the proceeds for the Lake Vista acquisition and general corporate purposes.

Negative

• None.

MINNEAPOLIS, Oct. 11, 2023 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today that it has recently closed on a series of transactions marking the company's entry into the Fort Collins, CO, MSA and exit from the Minot, ND, MSA.

In the Fort Collins market, Centerspace has closed on the acquisition of Lake Vista Apartment Homes in Loveland, CO, for an aggregate investment of $94.5 million. The acquisition includes the assumption of $52.7 million of mortgage debt at a rate of 3.45%. The mortgage features interest-only payments through June 2024 and a maturity in June 2026. The community was built in 2011 and includes 303 homes on 16 acres. It is adjacent to the UCHealth Medical Center of the Rockies and is part of the Centerra master-planned community featuring immediate access to grocers, retail, restaurants, and employers.

The Fort Collins MSA is a new market for Centerspace and an extension of the company's existing Mountain West platform. It features a diverse economic base, including healthcare, high-tech manufacturing, education, and oil and gas companies; a vibrant culture; and plentiful outdoor amenities, including serving as a gateway to Rocky Mountain National Park.

Centerspace has also closed on the sale of four apartment communities and associated commercial space in Minot, North Dakota for an aggregate price of $82.5 million. This marks the company's exit from the Minot market. Proceeds from the disposition were used to fund the Lake Vista acquisition and for general corporate purposes.

"These transactions continue the company's strategy of enhancing our portfolio quality and market exposure while maintaining balance sheet strength. We are excited to enter Fort Collins and are optimistic about the long-term prospects of that market," said Anne Olson, President and CEO of Centerspace.

About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, the company currently owns 72 apartment communities consisting of 13,088 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. In 2022, Centerspace was named the National Apartment Association's Leading Organization in Diversity, Equity, and Inclusion. For more information, please visit www.centerspacehomes.com. 

If you would like more information about this topic, please contact Josh Klaetsch, Investor Relations, at (701) 837-7104 or IR@centerspacehomes.com.

Contact Information
Josh Klaetsch, Investor Relations
Phone : (701) 837-7104
E-mail : IR@centerspacehomes.com 

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SOURCE Centerspace

FAQ

What is Centerspace's recent announcement?

Centerspace has entered the Fort Collins, CO, market and exited the Minot, ND, market through recent transactions.

What is the investment made by Centerspace in the acquisition of Lake Vista Apartment Homes?

Centerspace has invested $94.5 million in the acquisition of Lake Vista Apartment Homes.

What is the mortgage debt assumed by Centerspace in the acquisition?

Centerspace has assumed $52.7 million of mortgage debt at a rate of 3.45%.

What are the features of the mortgage?

The mortgage features interest-only payments through June 2024 and a maturity in June 2026.

What are the key highlights of the Fort Collins market?

The Fort Collins market offers a diverse economic base, including healthcare, high-tech manufacturing, education, and oil and gas companies, as well as plentiful outdoor amenities.

What has Centerspace sold in Minot, ND?

Centerspace has sold four apartment communities and associated commercial space in Minot, ND.

What was the price of the sale in Minot?

The sale of the four apartment communities and associated commercial space in Minot, ND, was for an aggregate price of $82.5 million.

How were the proceeds from the sale used?

The proceeds from the sale were used to fund the acquisition of Lake Vista and for general corporate purposes.

What is Centerspace's strategy behind these transactions?

Centerspace aims to enhance portfolio quality and market exposure while maintaining balance sheet strength.

What is Centerspace's outlook on the Fort Collins market?

Centerspace is optimistic about the long-term prospects of the Fort Collins market.