Private REIT Now Owns 810 Residential Units in Six States
ROCHESTER, N.Y. – Broadtree Homes (Broadtree), a private real estate investment trust (REIT) managed by Broadstone Real Estate, LLC (Broadstone), continues to grow its diversified residential income REIT. Today, Broadtree announced the acquisition of a portfolio of 37 single family rental homes in suburban Atlanta, Georgia, for a total purchase price of approximately $2.6 million.
Broadtree, which focuses on acquiring portfolios of stabilized single family homes, multifamily apartment communities, student housing, and other types of residential rental property, purchased the 37-unit portfolio from American Homes 4 Rent, (NYSE: AMH). The homes, which average 1,440 square feet, were acquired for an average purchase price of approximately $70,000, or just under $49 per square foot. As of closing, the portfolio was over 97% occupied. Broadtree now owns 301 single family homes in the Atlanta area.
“The Atlanta MSA is an attractive market with strong job and rent growth, and we are excited to add these stabilized properties to our Atlanta-area holdings at substantial discounts to replacement costs,” said Amy Tait, Chairman and CEO of Broadstone. “Broadtree expects to announce additional multifamily community and single family rental home portfolio acquisitions throughout the fourth quarter as we grow our diversified residential income REIT.”
Tones Vaisey PLLC represented Broadtree.
Broadtree is a private residential income REIT that holds a diversified, geographically dispersed portfolio of 810 residential rental units in Western New York; Palm Beach County, Florida; the Atlanta, Georgia area; the Greater Minneapolis, Minnesota area, Kentucky, and North Carolina.
Broadtree seeks residential property acquisitions via outright purchase for cash 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 Real Estate, LLC, remains open for investment by accredited investors only, with a minimum initial investment of $100,000. Shares are offered via private placement. Please see certain important disclosures regarding Broadtree at broadstone.com/disclosures.
Accredited investors are invited to download an investor kit: broadstone.com/SFR16