Morguard Corporation Confirms Acquisition of LEED Gold Multi-Family Residential Complex in Chicago, IL
MISSISSAUGA, ON, Dec. 21, 2012 /CNW/ - Today, Morguard Corporation (TSX: MRC) ("Morguard") completed the purchase and financing of Alta at K Station, a LEED Gold Certified high rise residential rental complex in Chicago, IL.
Alta at K Station was purchased free and clear of financial encumbrances for total consideration of US$302 Million (excluding closing costs) and financed with: (i) a mortgage in the principal amount of approximately US$200 million for a term of ten years, bearing interest at 3.29% per annum; (ii) and other available sources of funds.
"We are excited to join Chicago's growing market by acquiring this high-profile multi-family property," said Rai Sahi, Chief Executive Officer, Morguard Corporation. "This acquisition is indicative of our U.S. growth strategy to acquire high-quality core assets. We're building on our successful track record of ownership and management of real assets to deliver shareholder value."
The sellers are a venture between Chicago's Fifield Companies and Newport Beach, CA based Pacific Life Insurance Company. CBRE Capital Markets represented the sellers as well as Morguard Corporation in securing the $200 million in acquisition financing.
Alta at K Station comprises two towers built on an eight-level parking and retail podium with 848 residential units, 700 above-grade parking stalls and 12,000+ SF of high-street retail. The acquisition is expected to close on or about December 27, 2012 and conditions, other than customary closing conditions, have now been satisfied. The property, located at 555 West Kinzie Street in Chicago's West Loop, sits directly on the city's urban rail system on a 1.7 acre site. The 37 storey and 41 storey towers were completed for occupancy in 2010 and currently have an occupancy rate of about 94%.
Morguard will assume management of the complex on March 1, 2013, providing all asset management and property management services to support this long-term investment.
Morguard is an expert in North American real estate ownership, investment and management. With a strategic focus on high-quality assets and diversification, Morguard has a proven track record of realizing the potential of real estate through consistent investment performance. Morguard has more than $12 billion of assets owned and under management. The integrated real estate services company manages its own real estate portfolio, and also invests and manages on behalf of third-party institutional and private real estate investors. Morguard offers integrated real estate services, including investment management, asset management and property management.
Morguard Corporation also owns a 42.8% interest in Morguard Real Estate Investment Trust (TSX: MRT.UN) and a 56.1% effective interest in the Morguard North American Residential Real Estate Investment Trust (TSX: MRG.UN).
SOURCE Morguard Corporation