Starlight U.S. Multi-Family (No. 1) Value-Add Fund Completes Acquisition of Initial Properties

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, June 16, 2017 /CNW/ - Starlight U.S. Multi-Family (No. 1) Value-Add Fund (TSX.V: SUVA.A, SUVA.U) (the "Fund") announced today that it has successfully completed the acquisition of two properties located in Round Rock, Texas and Phoenix, Arizona comprising 943 multi-family residential suites for an aggregate purchase price of approximately US$154.8 million, which was satisfied by way of cash from the proceeds of the Fund's initial public offering ("Offering") and the proceeds of new first mortgages in the principal amount of approximately US$105.0 million.

The Fund indirectly acquired a 100% interest in The Landing at Round Rock, a property located 30 kilometres north of downtown Austin at 7711 O'Connor Road, Round Rock, Texas. In connection with the acquisition, new financing in the amount of approximately US$64.7 million has been secured for a three year term with two, one year extension options available, with an additional allowance for US$5.1 million of future funding for capital expenditures. Subject to certain conditions, financing is interest only and will be payable at an annual rate of LIBOR + 2.00%.The property is comprised of 583 suites in 44 three-story apartment buildings on a 33.21 acre site ranging in size from one bedroom to four bedrooms and includes a central clubhouse that contains modern amenities, including an aerobic centre, a games/billiards room, a day spa, a basketball court, a tennis court and a business centre. The property has four swimming pools with a lazy river, outdoor volleyball court, grilling area, attached garages, putting green and jogging and walking trails. Suites feature marble tile entries, wood burning fireplaces, 10-foot ceilings and oversized Jacuzzi tubs. The property will be managed by Roscoe Properties, Inc. ("Roscoe"), a regional multi-family property management company based in Austin, Texas. Roscoe currently manages 14,000 apartment suites in Texas.

The Fund also indirectly acquired a 100% interest in Spectra South, a property located 32 kilometres north of downtown Phoenix at 20425 North 7th Street, Phoenix, Arizona. In connection with the acquisition, new financing in the amount of approximately US$40.3 million has been secured for a three year term with two, one year extension options available, with an additional allowance for US$2.1 million of future funding for capital expenditures. Subject to certain conditions, financing is interest only and will be payable at an annual rate of LIBOR + 2.00%. The property is comprised of 360 apartment suites in 19 three-storey buildings located on a 11.35 acre site ranging in size from one bedroom to three bedrooms and includes a fitness and aerobic centre, day spa services, a Starbucks coffee bar, a 32-seat cinema room, and a business centre. Additionally, the property has a resort-style swimming pool with an outdoor lounge, water playground, grilling area and pet play-land. Suites feature black appliances, tile flooring and private patios and balconies. The property will be managed by Alliance Residential Company, the 7^th largest third-party multi-residential property management company in the United States, managing over 99,000 apartment suites.

The balance of the net proceeds of the Offering will be used to acquire an interest in one or more additional income-producing, multi-family properties in targeted regions in the United States within nine months of the closing date of the Offering, consistent with the primary purpose of the Fund, and for working capital purposes. The Fund has provided notice to the TSX Venture Exchange of the completion of its acquisition of The Landing at Round Rock and Spectra South, and expects its Class A Units and Class U Units to commence trading on or about June 19, 2017.

About Starlight U.S. Multi-Family (No. 1) Value-Add 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 value-add, income producing rental properties in the United States multi-family real estate market.

Forward Looking Information

This press release contains statements that may constitute forward-looking information within the meaning of Canadian securities laws and which reflect the Fund's current expectations regarding future events, including the commencement of trading of securities of the Fund on the TSX Venture Exchange and the acquisition of further properties. The forward-looking statements involve risks and uncertainties including those set forth in the Fund's final prospectus dated June 12, 2017, including under the section "Risk Factors", a copy of which can be obtained at www.sedar.com. Actual results could differ materially from those projected herein. Material factors and assumptions were used by management of the Fund to develop the forward-looking information. Investors are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the Fund undertakes no 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 (No. 1) Value-Add Fund

To learn more about Starlight U.S. Multi-Family, visit www.starlightus.com or contact: Evan Kirsh, President, Starlight U.S. Multi-Family (No.1) Value-Add Fund, 647-725-0417, [email protected]; Martin Liddell, Chief Financial Officer, Starlight U.S. Multi-Family (No.1) Value-Add Fund, 647-729-2588, [email protected]