Investors Real Estate Trust IRET has shelled out $72.5 million for the acquisition of a 393-unit luxury townhome portfolio in Rochester, MN. The company has also revealed the disposition of a student housing portfolio in St. Cloud, MN for $5.6 million.
The move comes as part of the company’s strategy of portfolio repositioning and capital recycling to focus on premium institutional properties. The acquisition of the Rochester portfolio, in particular, boosts the company’s presence as the largest apartment owner and operator in the market.
The acquired townhome portfolio includes four multifamily communities – Avalon Cove at 3202 Avalon Cove Lane NW (a 187-unit property), Cascade Shores at 144 Beach Lake Road SW (90-unit), Crystal Bay at 2450 Crystal Bay Court SW (76-unit) and French Creek at 2000 Chardonnay Lane NW (40-unit).
Notably, Investors Real Estate now owns 1,773 units within the Rochester market with the acquisition of these townhomes. This market offers the company decent growth prospects for its diversified economic base, especially backed by the presence of the reputed Mayo Clinic.
The Rochester market is growing rapidly at the moment, backed by strong fundamentals. In fact, given its population of around 212,000, Rochester is the second largest MSA in the state, with Mayo Clinic and IBM as the largest private employers. Hence, this acquisition should be a strategic fit for the company.
With a focus on income-producing properties mainly in the upper Midwest, Investors Real Estate currently hold for investment a portfolio of 173 properties with a total of 4.5 million square feet of leasable space. These properties include multifamily properties, healthcare properties including senior housing, industrial properties and other commercial properties.
Investors Real Estate currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like Mack-Cali Realty Corp. CLI, Public Storage PSA and PS Business Parks Inc. PSB. Each of the three stocks carries a Zacks Rank #2 (Buy).
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