Starlight US Multi-Family Buys Properties in Phoenix, Austin for $154.8 Million

Article originally posted on CoStar on June 22, 2017

Toronto-Based Company Completes IPO for First Value-Add Fund

Starlight U.S. Multi-Family (No. 1) Value-Add Fund has acquired two properties located in Round Rock, TX and Phoenix comprising 943 multifamily units for a combined $154.8 million.

The transaction was closed with a combination of funds raised from the initial public offering for the Toronto-based company’s first value-add fund and $105 million in first-mortgage proceeds.

The fund acquired a full interest in the 583-unit The Landing at Round Rock, 7711 O’Connor Road, north of downtown Austin, financing the purchase with about $64.7 million for a three year term with extension options available. The property is comprised of 44 three-story apartment buildings on a 33.2-acre site. The property will be managed by Austin-based Roscoe Properties, Inc., which currently manages 14,000 apartment suites in Texas.

Starlight also acquired a 100% interest in the 360-unit Spectra South property north of downtown Phoenix at 20425 North 7th St., using $40.3 million in new financing. The property is comprised of 19 three-story buildings on an 11.35-acre site. This property will be managed by Alliance Residential Co., the seventh-largest third-party multi-residential property management company in the U.S., managing over 99,000 units.

The balance of the net proceeds of the IPO will be used to acquire an interest in one or more multifamily properties in targeted U.S. regions within nine months.