Starlight U.S. Multi-Family Core Fund Announces Strategic Recycling of Capital With Proposed Acquisition of Apartment Complex In Rapidly Growing Raleigh, North Carolina Submarket

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TORONTO, Feb. 16, 2016 /CNW/ - Starlight U.S. Multi-Family Core Fund (TSX.V: UMF.A, UMF.U) (the "Fund") announced today that it has agreed to acquire The Village at Marquee Station ("Marquee Station"), a 265 unit, garden style, Class "A" apartment complex completed in 2013 and located in a rapidly growing area in south Raleigh, North Carolina at 2110 Cinema Drive.

Pursuant to a purchase and sale agreement made and entered into on January 12, 2016, as amended from time to time, Marquee Station Acquisition LLC, an indirect wholly owned subsidiary of the Fund, has agreed to purchase Marquee Station unencumbered for the purchase price of approximately US$41.50 million. The purchase agreement contains customary representations and warranties for a transaction of this nature. Subject to the satisfaction or waiver of conditions precedent, the purchase of Marquee Station is scheduled to close on or about February 26, 2016.

The purchase price for Marquee Station is expected to be partially satisfied with the net proceeds from the disposition of Bridgemoor at Denton, with the remainder expected to be funded by approximately US$31.00 million, nine month term financing with one three-month extension available. Subject to certain conditions, financing is expected to be interest only and payable at a blended rate of approximately 3.25%.

Marquee Station

Marquee Station consists of twelve, three-storey walk-up buildings on an eighteen acre site comprised of one, two and three bedroom units. Each apartment unit at Marquee Station contains modern interior finishes, including wood plank flooring, nine foot ceilings with custom trim and crown molding, gourmet-inspired kitchens with brushed nickel fixtures, designer wood cabinetry, high-efficiency appliances, granite countertops and a breakfast bar, walk-in laundry rooms with a full-size washer and dryer, ceramic tiled garden tubs, and private porches or balconies. Indoor amenities at Marquee Station include a designer clubhouse with a 24-hour business hub, a billiards room, a pet grooming salon, a fully-equipped fitness centre with a cardio room, and an interactive gaming lounge and media studio. Exterior features include a saltwater pool with a cabana and poolside trellis area, an onsite car care centre, and an entertainment area with natural gas grills. The property also has 42 climate-controlled storage units and 68 detached garages.

The Fund is expected to retain Greystar Real Estate Partners ("Greystar"), the largest third-party, multi-family property manager in the United States, as the property manager at Marquee Station. Greystar is currently managing five additional communities for the Fund.

Evan Kirsh, President of the Fund, commented, "The acquisition of The Village at Marquee Station utilizing the net proceeds from the sale of Bridgemoor at Denton demonstrates the Fund's ability to assess market opportunities to recycle capital and improve the Fund's portfolio and financial performance through the re-investment in newer, geographically diverse properties with rental growth opportunities."   

The Fund Portfolio

Following completion of the acquisition of Marquee Station, the Fund expects to have interests in and operate a portfolio comprising 2,606 recently constructed, Class "A" stabilized, income producing multi-family real estate units located in Dallas and Houston, Texas, Charlotte and Raleigh, North Carolina and Atlanta, Georgia.

About Starlight U.S. Multi-Family Core Fund

The Fund is a limited partnership formed under the Limited Partnerships Act (Ontario) for the primary purpose of indirectly acquiring, owning and operating a portfolio of diversified income producing rental properties in the U.S. multi-family real estate market.

Forward-Looking Information

This news release contains statements that may constitute forward-looking statements within the meaning of Canadian securities laws and which reflect the Fund's current expectations regarding future events, including statements concerning the acquisition of Marquee Station, the financing of Marquee Station and the overall improvement of the financial performance of the Fund resulting from the acquisition.  Particularly, statements regarding future results, performance, achievements, prospects or opportunities for Fund or the real estate industry are forward-looking statements. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

The forward-looking statements in this news release involve risks and uncertainties, including those set forth in the Fund's materials filed with the Canadian securities regulatory authorities from time to time at www.sedar.com. Actual results could differ materially from those projected herein. Those risks and uncertainties include, among other things, risks related to: reliance on the Fund's manager; the availability of future acquisitions; the acquisition of Marquee Station; the financing of Marquee Station; the overall improvement of the financial performance of the Fund's portfolio resulting from the acquisition of Marquee Station; the experience of the Fund's officers and directors; substitutes for residential real estate rental units; reliance on property management; competition for real property investments and tenants; and U.S. market factors.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in developing such forward-looking statements including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the following: the acquisition of  Marquee Station; the availability of financing for Marquee Station; the overall improvement of the financial performance of the Fund's portfolio resulting from the acquisition of Marquee Station; the ability of the manager of the Fund to manage and operate the Fund's properties; the ability of the property managers selected to manage the Fund's properties; the population of multi-family real estate market participants; assumptions about the markets in which the Fund operates; the global and North American economic environment; foreign currency exchange rates; and governmental regulations or tax laws. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, none of the Fund or its manager undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Starlight U.S. Multi-Family Core Fund

Evan Kirsh, President, Starlight U.S. Multi-Family Core Fund, 647-725-0417, [email protected]