MVP REIT Inc., a publicly registered, non-traded, hybrid real estate investment trust, has acquired of a 376-unit, 52,000-square-foot self-storage facility in the Austin suburb of Cedar Park, Texas. Built in 2000, the facility is comprised of 12 buildings on 4 acres, with occupancy in excess of 90 percent. The $3.5 million all-cash acquisition closed on Dec. 14.
"This acquisition is an example of the type of properties in which we are seeking to invest," explained Mike Shustek, chairman and CEO of MVP REIT.
In addition, MVP REIT announced it will initiate monthly cash distributions to stockholders beginning January 2013. The initial monthly distribution represents an annualized distribution rate of $0.54 per common share, or 6 percent, based on a purchase price of $9 per common share. However, no assurance can be given that distributions will continue to be paid at this rate. The board of directors may at any time change the distribution rate or suspend payment of distributions. Approved monthly distributions are expected to be paid by the 10th of each month to shareholders of record at the end of the preceding month.
MVP REIT is currently conducting a public offering of up to 55,555,556 shares of its common stock at $9 per share and up to an additional 5,555,556 shares of its common stock for issuance under its distribution reinvestment plan at $9 per share.
The company intends to use the proceeds from the offering to invest in a diversified portfolio of income-producing commercial real estate properties and loans secured by income-producing commercial real estate as well as to pay expenses and fees associated with the offering. MVP REIT intends to primarily focus its activities on assets located in the western and southwestern United States.
Sources:
- GlobeNewswire: MVP REIT Acquires Storage Facility Near Austin, Texas