Firm Capital Apartment Real Estate Investment Trust

Firm Capital Apartment Real Estate Investment Trust Announces Closing of Previously Announced 50% Interest in a 235 Unit, Multi-Family Residential Building for $37.5 Million in the Washington D.C. Metro Area

All amounts are in US Dollars unless otherwise stated.

TORONTO, Sept. 22, 2020 (GLOBE NEWSWIRE) -- Firm Capital Apartment Real Estate Investment Trust (the “Trust”), (TSXV: FCA.U), (TSXV: FCA) is pleased to announce it has closed the previously announced joint venture with an unrelated third party to acquire a $37.5 million multi-family residential property located in the Washington D.C. Metro Area.

The Trust has closed the North Pointe Apartments (“North Pointe” or the “Property”), a 235-unit, multi-family residential property located in Hyattsville, Maryland. The joint venture purchased the property for $37.5 million or approximately $159,575 per unit ($217 per square foot), representing a 5.7% capitalization rate. The Property was financed with a new first mortgage for approximately $29.7 million with an approximate 3.0% interest rate. The terms of the financing include a four-year interest-only or I/O period, 30 year amortization and a twelve year term. The remaining capital requirement, including closing and working capital, is approximately $10.8 million and was funded through $6.8 million of common equity held 50% by the Trust and 50% by the unrelated third party, with the remaining $4.0 million funded as preferred equity at an 8% rate of return, held 100% by the Trust.

ABOUT FIRM CAPITAL APARTMENT REAL ESTATE INVESTMENT TRUST
Firm Capital Apartment Real Estate Investment Trust is a U.S. focused real estate investment trust that pursues multi-residential income producing real estate and related debt investments on both a wholly owned and joint venture basis. The Trust has ownership interests in a total of 2,308 apartment units diversely located in Florida, Connecticut, Texas, New York, New Jersey, Georgia and Maryland.

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