Home Properties Inc. has purchased a 1,350-unit apartment complex in Maryland for $186 million, the company said Monday.
The property, Howard Crossing, is in Ellicott City, which is less than one mile from Charleston Manor, an 858-unit complex Home Properties acquired in September 2010. Howard Crossing is roughly a dozen miles from downtown Baltimore.
A portion of the all-cash acquisition of Howard Crossing was funded using the proceeds from the issuance of $50 million of unsecured senior guaranteed notes, which are due June 27, 2019, and bear interest at 4.16 percent, the company said. The balance of the purchase price was funded through the line of credit and a $100 million unsecured bank demand loan.
At closing on June 28, Howard Crossing was 92.6 percent occupied at monthly rents averaging $1,111.
During the first three years of ownership, Home Properties expects to spend some $12 million at Howard Crossing, in addition to normal capital expenditures, to upgrade to individual units and exteriors, the company said.
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