(Source: PRNewswire-FirstCall)
MEMPHIS, Tenn., June 29 /PRNewswire-FirstCall/ -- Mid-America Apartment Communities, Inc. reported today that it has established Mid-America Multifamily Fund II, LLC ("Fund II"). The fund will be a joint venture between Mid-America and institutional capital. Targeted investment opportunities will be within Mid-America's existing Sunbelt markets and operating region. Mid-America will own a 1/3 interest in Fund II, with plans to acquire up to $250 million of apartment properties over the next eighteen months, and have a 6-8 year investment life. Fund II will focus on acquiring properties with redevelopment upside offering value creation opportunity through capital improvements, operating enhancements and restructuring in-place financing. Mid-America expects to invest a total of approximately $25 million in equity as investments are made.
Eric Bolton, CEO, said, "We've had excellent success with past investment funds, and we're excited about the opportunity to leverage Mid-America's experienced and strong re-development and operating skills. We think this new initiative provides an excellent opportunity to create value for Mid-America's shareholders."
Mid-America will earn a management fee, an asset management fee, and have the potential to earn promote fees. Mid-America will target apartment properties that are 7 years old or older for Fund II, and will continue to acquire newer properties for its own portfolio. There are no plans for Mid-America to contribute its existing properties to Fund II.
About Mid-America Apartment Communities, Inc.
MAA is a self-administered, self-managed apartment-only real estate investment trust, which currently owns or has ownership interest in 42,390 apartment units throughout the Sunbelt region of the U.S. For further details, please refer to the Company website at http://www.maac.net/ or contact Investor Relations at investor.relations@maac.net or (901) 435-5371. 6584 Poplar Ave., Memphis, TN 38138.
Forward-Looking Statements
We consider portions of this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, with respect to our expectations for future periods. Forward looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements concerning property acquisitions and dispositions, development activity and capital expenditures, capital raising activities, rent growth, occupancy, and rental expense growth.
