ROCHESTER, N.Y. – Broadtree Residential, Inc. (Broadtree), a private real estate investment trust (REIT) managed by Broadstone Real Estate, LLC (Broadstone), together with Broadtree Residential, LLC (the Operating Company) as borrower, announced it has obtained a $100 million senior secured revolving line of credit (the “Revolver”) with JPMorgan Chase. The Revolver contains an accordion feature that allows for the facility to be expanded up to $250 million of total borrowing capacity. The facility carries a two-year initial term, plus a one-year extension option, which is subject to certain conditions.
“This new credit facility serves as the first step in building a more flexible balance sheet for Broadtree Residential,” said Ryan Albano, Broadtree’s Chief Financial Officer. “Broadtree has enhanced its status as a well capitalized and competitive buyer in the multifamily marketplace, and does not depend on financing contingencies in order to close new acquisitions. We look forward to utilizing the accordion feature of this facility to support the REIT’s growth in 2018 and beyond.”
The Revolver will be used to fund new acquisitions of multifamily apartment communities, refinance existing debt, make capital improvements, and serve general working capital needs.
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, or $100,000 via financial advisors. 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/JP1