CENTERSPACE ANNOUNCES MINNEAPOLIS INVESTMENT ACTIVITY

Rhea-AI Summary

Centerspace (NYSE: CSR) has acquired Noko Apartments in Minneapolis for $46.4 million. The deal includes a $29.9 million construction loan at 4.5% interest and a $13.5 million mezzanine loan at 11.5%. Noko, completed in 2021, features 130 homes and is strategically located near Lake Nokomis, enhancing walkability and access to amenities. Centerspace's acquisition aligns with its strategy to improve portfolio quality while increasing distributable cash flow and core FFO, according to President and CEO Mark O. Decker Jr.

Positive

• Acquisition of Noko Apartments boosts portfolio quality.
• Strategic location enhances resident experience and demand.
• Investment aligns with goals of increasing distributable cash flow and core FFO.

Negative

• High interest rates on loans: 4.5% for construction, 11.5% for mezzanine.

MINNEAPOLIS, Jan. 27, 2022 /PRNewswire/ -- Centerspace (NYSE: CSR) announced today that is has acquired Noko Apartments in Minneapolis, Minnesota for an aggregate purchase price of $46.4 million. Centerspace previously financed Noko through its preferred financing program with $29.9 million of a construction loan bearing interest at 4.5% and $13.5 million of a mezzanine loan bearing interest at 11.5%. Constructed in 2021, Noko is a 130-home mixed-use community located adjacent to Lake Nokomis in the Southwest submarket and features walkability and connectivity to retailers and the lakes recreational areas. In addition to the homes, Noko sits atop a new Lunds & Byerlys grocery store.   

"Noko is a great place to live, enabling us to meet our goal of delivering a great resident experience. It also fits our investment thesis of enhancing our portfolio quality while growing distributable cash flow and core FFO. We were pleased to partner with Trammell Crow Company on the development of this community and are happy to add Noko to our portfolio," said Mark O. Decker Jr., 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 84 apartment communities consisting of 14,848 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2021 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

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

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

 

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SOURCE Centerspace

FAQ

What is the purchase price for Noko Apartments by Centerspace?

Centerspace acquired Noko Apartments for $46.4 million.

What are the financing details for the Noko Apartments acquisition?

The acquisition was financed through a $29.9 million construction loan at 4.5% interest and a $13.5 million mezzanine loan at 11.5%.

When was Noko Apartments constructed?

Noko Apartments was constructed in 2021.

How many homes are in Noko Apartments?

Noko Apartments features 130 homes.

What strategic benefits does the Noko acquisition provide to Centerspace?

The acquisition enhances portfolio quality and aligns with Centerspace's goal of increasing distributable cash flow and core FFO.