Private REIT Begins Accepting New Equity Capital in November
ROCHESTER, N.Y. – Broadtree Residential (Broadtree), a private real estate investment trust (REIT) managed by Broadstone Real Estate, LLC (Broadstone), today announced the acquisition of the REIT’s third multifamily apartment community, and the re-launch of capital raising activities to fund the continued growth of the REIT. Management, the Board of Directors, and other “insiders” have invested more than $49 million in Broadtree, which currently accounts for 50%+ of the offering’s equity capitalization. Broadtree’s multifamily strategy is focused on Class B, stabilized properties in the southeastern U.S., while maintaining flexibility and opportunism for selective market entry.
On November 9th, Broadtree closed on the acquisition of Walden Ridge, a 210-unit multifamily community located in Kennesaw, Georgia, for a purchase price of $36 million. Simultaneous to closing, Broadtree originated a $23.6 million mortgage with a 10-year term at 4.02% interest, secured via Fannie Mae. The first seven years of the loan are interest only, and the last three years will have amortization based on a 30-year schedule.
Built in 2002, the Walden Ridge gated apartment community is composed of nine residential buildings totaling 231,200 rentable square feet. In aggregate, the buildings contain 78 one-bedroom units, 104 two-bedroom units, and 28 three-bedroom units, with an average size of approximately 1,100 square feet per unit. The community offers numerous attractive amenities, including units with nine-foot ceilings, walk-in closets, and garden tubs, and a resort-style swimming pool with sun deck, clubhouse, fitness center, tennis court, and dog park.
“We are thrilled to announce that Broadtree has resumed capital raising activities, and is now open for investment by new and current investors,” said Chris Czarnecki, Broadstone’s CEO. “The Walden Ridge acquisition will serve as a cornerstone of the REIT’s portfolio, and we look forward to announcing additional multifamily apartment community acquisitions as we continue to grow Broadtree on behalf of our Shareholders.”
About Broadtree Residential:
Broadtree Residential, Inc. (Broadtree) is a private real estate investment trust (REIT) designed to provide Shareholders with predictable, tax-sheltered cash flow, and generate attractive total returns via investment in a diversified portfolio of multifamily apartment communities.
Broadtree seeks residential property acquisitions via outright cash purchases and/or through UPREIT transactions. UPREIT transactions, (where “UPREIT” stands for Umbrella Partnership REIT), provide a tax deferred exit strategy for owners of real estate who might otherwise recognize a significant taxable gain in a cash sale of a highly appreciated property with a low tax basis. These transactions enable the property owner to exchange owned real estate for an interest in a professionally managed portfolio that is diversified by geography and property type.
Broadtree, which is externally managed by Broadstone, remains open for investment by accredited investors only, with a minimum initial investment of $200,000. Shares are offered via private placement. Please see certain important disclosures regarding Broadtree, including the pending sale of its portfolio of single family rental homes, at broadstone.com/disclosures.
Accredited investors are invited to download an investor kit: Broadstone.com/MF