MINOT, N.D., March 28, 2016 /PRNewswire/ -- Investors Real Estate Trust (NYSE: IRET) (NYSE: IRETPR) (NYSE: IRETPRB), a self-administered, equity real estate investment trust investing in income-producing properties located primarily in the upper Midwest, today announced the acquisition of a 393-unit luxury townhome portfolio in Rochester, Minnesota for $72.5 million and the disposition of a student housing portfolio located in St. Cloud, Minnesota for $5.6 million.
"The acquisition of this multifamily portfolio is a strong addition to our platform and solidifies our presence as the largest apartment owner and operator in the Rochester market," said Tim Mihalick, President and Chief Executive Officer of the Company. "Rochester is a growing market with strong fundamentals and a healthy, diversified economic base, including the world-renowned Mayo Clinic, and we believe this acquisition creates the opportunity to generate attractive returns over time. This acquisition, coupled with the sale of non-core student housing assets, continues the evolution of our portfolio and demonstrates our ability to efficiently recycle capital into higher-quality institutional properties as we look to create long-term shareholder value."
The townhome portfolio consists of four multifamily communities with a central leasing and management office and a community building and has a total of 393 two- and three-bedroom units. The properties were originally built between 1990 and 2010. Avalon Cove at 3202 Avalon Cove Lane NW is a 187-unit property which features contemporary-designed townhomes, serene lake views and upscale amenities. Cascade Shores at 144 Beach Lake Road SW is a 90-unit property with high end finishes and located adjacent to Cascade Lake Park. Crystal Bay at 2450 Crystal Bay Court SW is a 76-unit property with expansive floor plans and surrounded by serene lakes and wooded areas. French Creek at 2000 Chardonnay Lane NW is a 40-unit property offering affordable and centrally-located townhomes with shopping and dining options in close vicinity.
With the addition of these townhomes, the Company now owns 1,773 units within the Rochester market. Rochester is the second largest MSA in Minnesota, with a population of approximately 212,000. The largest private employers in the MSA include the Mayo Clinic and IBM.
Additionally, the Company sold a student housing portfolio, consisting of eight buildings comprising 391 units, located in St. Cloud, Minnesota, for $5.6 million.
About Investors Real Estate Trust
We are a self-administered, equity real estate investment trust investing in income-producing properties located primarily in the upper Midwest. We hold for investment a portfolio of 173 properties consisting of 90 multifamily properties, 66 healthcare properties (including senior housing), 7 industrial properties and 10 other commercial properties with a total of 4.5 million square feet of leasable space. Our common shares, Series A preferred shares and Series B preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET, IRETPR and IRETPRB, respectively). Our press releases and supplemental information are available on our website at www.iret.com or by contacting Investor Relations at 203-682-8377.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from projected results. Such risks, uncertainties and other factors include, but are not limited to: fluctuations in interest rates, the effect of government regulation, the availability of capital, changes in general and local economic and real estate market conditions, competition, our ability to attract and retain skilled personnel, and those risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for fiscal year ended April 30, 2015. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
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