Little Rock-based BSR Real Estate Investment Trust announced Wednesday that it will pay $51.6 million to acquire a 303-unit apartment complex in the Austin area.
The company will add the Retreat at Wolf Ranch Apartments in Georgetown, Texas, to the portfolio of apartment buildings it owns and manages. BSR said it will fund the purchase with a $26.5 million mortgage and draw on its credit facility for the balance.
Wolf Ranch will be immediately accretive to BSR's adjusted funds from operations on a per unit basis, the company said. For real estate investment trusts, adjusted funds from operations is similar to earnings per share.
"Despite instability in the broader U.S. economy attributable to the covid-19 pandemic, we continue to execute our growth plan," John Bailey, BSR's chief executive officer, said in a news release.
BSR's growth strategy is to sell older properties in declining markets and use the capital to help purchase newer units in growing markets like Austin, Dallas, Houston, Oklahoma City and Northwest Arkansas.
Before the pandemic, those metropolitan areas were among the leading regions for population and economic growth.
Wolf Ranch is the 10th acquisition BSR has made since going public on the Toronto Stock Exchange two years ago.