MINNEAPOLIS, Oct. 2, 2024
/PRNewswire/ -- Centerspace (NYSE: CSR) announced that on
October 1, 2024, it closed on the
acquisition of The Lydian in Denver,
CO, for total consideration of $54
million.
Centerspace also announced the completed redemption of all
outstanding 6.625% Series C Cumulative Redeemable Preferred Shares
on September 30, 2024. The Company
also announced that year-to-date through September 30, 2024, it has sold approximately
1.59 million shares under its ATM program. Gross proceeds from
these ATM sales were approximately $113.73
million, before fees and expenses, which was used to fund
the preferred share redemption and pay down line of credit
debt.
The Lydian is a 129-home apartment community in Denver, CO, that also includes 23,000 square
feet of fully leased office and street-level retail space. The
property was constructed in 2018 and sits adjacent to the
25th and Welton light rail station in the Five Points
neighborhood of Denver's Downtown
submarket. Centerspace entered the Denver market in 2017 and now provides 2,536
homes in nine communities throughout the Denver and Fort
Collins regions.
The acquisition was financed through the assumption of
$35 million of mortgage debt, the
issuance of $14.5 million of common
operating partnership units, and cash. The assumed debt carries an
interest rate of 3.72%, is interest-only through January 2032, and matures in February 2037. Operating partnership units were
issued at a negotiated value of $76.42 per unit. As part of the transaction
consideration, the Company will provide tax protection to the
holders of the common operating partnership units.
"We are excited to add The Lydian to our portfolio. Its
proximity to our existing Denver
communities will allow us to more efficiently create Better Every
Days for our residents and team members," said Anne Olson, Centerspace's President and CEO." At
the same time, the strategic financing undertaken to complete this
acquisition, combined with our recent preferred redemption,
highlight the levers available to Centerspace to continue to add
value for our shareholders while improving our balance sheet."
About Centerspace
Centerspace is an owner and operator of apartment communities
committed to providing great homes by focusing on integrity and
serving others. Founded in 1970, the company currently owns 71
apartment communities consisting of 13,012 homes located in
Colorado, Minnesota, Montana, Nebraska, North
Dakota, and South
Dakota. Centerspace was named a top workplace for the
fifth consecutive year in 2024 by the Minneapolis Star
Tribune. For more information, please visit
https://www.centerspacehomes.com.
If you would like more information about this topic, please
contact Josh Klaetsch, Investor
Relations, at (701) 837-7104 or IR@centerspacehomes.com.
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SOURCE Centerspace
