NexPoint Residential Trust, Inc. announced the closing of the sale of Radbourne Lake Apartment Homes in Charlotte, North Carolina, a 225-unit property built in 1991.
Radbourne Lake Apartments features comfortable one-, two-, and three-bedroom apartments and townhomes averaging 800 to 1,400 square feet complete with premium kitchens, patios, and wood-look flooring, and other upscale features. Community residents have access to the upgraded fitness center and off-leash bark park.
The property was acquired for $24.3 million on September 30, 2014, and has provided consistent operational and cash flow performance for the portfolio for the last 9+ years. As of April 30, 2024, the property was 92.4% leased with a weighted average effective monthly rent of approximately $1,420, which is 58.5%, or $524, higher than it was upon takeover. Net proceeds from the sale were approximately $18.6M, delivering a trailing nominal tax and insurance adjusted cap rate of 5.18%, a 19.24% levered internal rate of return and a 3.64x multiple on invested capital, each of which well exceeded expectations.
“NXRT is pleased to announce another successful 2024 disposition, as highlighted during the first quarter 2024 earnings call. Moving forward, NXRT will continue to diligently monitor the transaction and capital markets, seeking opportunities to unlock liquidity that the Company can utilize to enhance the balance sheet, repurchase shares, and/or pay off higher property-level debt, all of which would be conducive to future growth,” said Matt McGraner, Chief Investment Officer.
NexPoint Residential Trust (“NXRT” or the “Company”) (NYSE: NXRT) is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol “NXRT,” primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with “value-add” potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor which has extensive real estate experience.
