PHILADELPHIA--(BUSINESS WIRE)--The Resource Real Estate Opportunity REIT (“Opportunity REIT”) sponsored by Resource Real Estate, Inc. (“Resource Real Estate”), a national real estate firm specializing in opportunistic and value-add investing and financing, announced today the financing of Cannery Lofts (“the Property”) in downtown Dayton, OH.
The Property was financially distressed and inefficiently operated when the Opportunity REIT acquired the note secured by the Property in May 2011. After foreclosing on and obtaining title to the Property in June 2012, the Opportunity REIT was able to stabilize the Property in a manner consistent with the Opportunity REIT’s investment objectives of acquiring discounted real estate, adding capital and professional management, stabilizing occupancy and increasing property income.
The non-recourse mortgage loan amount is $8.2 million, equal to approximately 115 percent of the Opportunity REIT’s original $7.1 million purchase price of the note secured by the Property. The mortgage loan matures in 2020 and bears interest at one-month LIBOR plus 3.3 percent, which was equal to an interest rate of 3.48 percent as of August 22, 2013, based on LIBOR of 0.18 percent.
The Property is located at the northern end of Dayton’s “Oregon District,” a neighborhood that has numerous restaurants and entertainment venues. It is within five miles of most of Dayton’s major employers, including Wright Patterson Air Force Base, the University of Dayton and Miami Valley Hospital and is currently 99 percent occupied.
Cannery Lofts is one of the few luxury spaces in downtown Dayton and offers residents unique layouts, exposed beams and bricks, as well as other distinctive features such as restricted access entry and a 24-hour fitness center, which is the largest private workout facility in downtown Dayton.
About Resource Real Estate
Resource Real Estate (“RRE”) is a firm that specializes in direct real estate investments, commercial real estate lending and global real estate securities. For over two decades, RRE and its affiliates have managed real estate assets for institutional and individual investors. RRE and its parent company have offices in New York, Los Angeles, London, Singapore as well as its headquarters in Philadelphia and additional locations across the U.S.
RRE owns and manages real estate assets with an aggregate value of approximately $1.9 billion. RRE is a wholly owned subsidiary of Resource America (NASDAQ: REXI). As of June 30, 2013, Resource America managed $16.1 billion across various asset classes.