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Tricon acquires a portfolio of approximately 550 homes in Charlotte,
North Carolina for US$26 million. Based on current income in place,
the portfolio is generating an income yield/cap rate of over 12.5%
(before maintenance/capex reserves).
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The acquisition marks Tricon's expansion into Charlotte. The Company's
operating partner in the market will be Lake Success Living, Tricon's
current partner in Southeast Florida, which also has operations in
Charlotte.
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Tricon has also closed on a new partnership in Los Angeles County with
Turnstone, LLC, a leading local single-family rental operator, which
will be launched in early 2013.
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At year-end 2012, Tricon had deployed approximately $140 million of
capital into its U.S. single-family rental platform and has acquired
over 1,500 homes.
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN
THE UNITED STATES/
TORONTO, Jan. 3, 2013 /CNW/ - Tricon Capital Group Inc. (TSX: TCN)
("Tricon" or the "Company"), one of North America's leading residential
real estate investment companies, today announced the acquisition of a
550 unit portfolio of homes in Charlotte, North Carolina for US$26
million. The portfolio was assembled over several decades by a
private individual and has an occupancy rate of approximately 95%.
Based on current rents in place and historical operating expenses, the
purchase price equates to a cap rate of over 12.5% (before
maintenance/capex reserves). Tricon is entering Charlotte in
partnership with Lake Success Living ("Lake Success"), which has been
active in Southeast Florida (Miami-Dade, Broward and Palm Beach
Counties) since 2009 and in Charlotte since mid-2012.
In addition to its Charlotte expansion, Tricon has also closed on a new
partnership in Los Angeles, California with Turnstone, LLC
("Turnstone"), a company that has been active in the single-family
rental and for-sale sectors since 1997 and is known for its well
defined geographic focus, acquisition expertise and renovation acumen.
This new partnership will begin acquiring homes in early 2013.
"As part of the expansion plan for our U.S. single-family rental
platform, we had identified Charlotte as a city with strong underlying
population and employment growth fundamentals that serves as a regional
hub for the southeastern United States," said David Berman, Tricon's
Chairman and Chief Executive Officer. "This portfolio acquisition came
along at an opportune time and has allowed us to quickly become a local
market leader. Over time we intend to drive additional value from this
acquisition by increasing rents to market levels and renovating homes
that turn over with the long-term goal of maximizing rents and
minimizing on-going maintenance costs. In addition to Charlotte, we
are excited about expanding into Los Angeles with Turnstone, an
industry veteran with a stellar track record. As a whole, I am
extremely pleased with the U.S. single-family rental platform that we
built over the course of 2012 and fully expect that we will experience
continued success in 2013 and beyond."
About Tricon Capital Group Inc.
Founded in 1988, Tricon is one of North America's leading residential
real estate investment companies with approximately $1.1 billion of
third-party assets under management and a growing portfolio of U.S.
single-family rental homes. Tricon provides financing to local
operators or developers in select markets in the United States and
Canada, with a primary focus on for-sale housing in growing markets.
Since inception, Tricon has invested in approximately 150 transactions
for development projects valued at more than $10 billion. More
information about Tricon is available at www.triconcapital.com.
Forward-Looking Statements
This press release may contain forward-looking statements relating to
expected future events and financial and operating results and
projections of the Company, including statements regarding future
plans, objectives or economic performance that involve risks and
uncertainties. Forward-looking information and statements are based on
management's expectations, intentions and assumptions. If unknown risks
arise, or if any of the assumptions underlying the forward-looking
statements prove incorrect, actual results may differ materially from
management expectations as projected in such forward-looking
statements. Examples of such risks include, but are not limited to, the
risks disclosed in the Company's final long form prospectus dated May
14, 2010, the risks disclosed in the Company's final short form
prospectus dated April 24, 2012, the risks disclosed in the Company's
final short form prospectus dated July 23, 2012, the risks disclosed in
the Company's final short form prospectus dated December 4, 2012 and
the risks described in the Company's continuous disclosure materials
from time-to-time, as available on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by applicable law.
SOURCE: Tricon Capital Group Inc.
