Pure Multi-Family REIT LP Completes $50M IPO to Acquire Dallas Assets
Pure Multi-Family REIT LP has completed its initial public offering, offering 10 million class A limited partnership units at a price of $5.00 per Unit for total gross proceeds of $50 million.
The REIT intends to use the net proceeds of the Offering to indirectly acquire a portfolio of 390 multi-family residential units in two properties located in the Dallas-Fort Worth area. The additional proceeds will be used to acquire additional multi-family properties and for general corporate purposes.
Pure Multi-Family Management Limited Partnership is the managing general partner of the REIT LP.
The Managing GP is affiliated with Sunstone Realty Advisors Inc. and controlled by Darren Latoski and Stephen Evans. Since 2002, this group has identified, acquired, managed and divested approximately $1.2 billion in income-producing real estate in Canada and the United States, including over $200 million in nine U.S. multi-family real estate properties acquired since 2008.
The Units were offered through a syndicate of agents led by Dundee Securities Ltd. and Canaccord Genuity Corp., and including National Bank Financial Inc., Raymond James Ltd., Scotia Capital Inc., GMP Securities L.P., Desjardins Securities Inc., HSBC Securities ( Canada ) Inc., Macquarie Capital Markets Canada Ltd., Sora Group Wealth Advisors Inc. and Union Securities Ltd. (collectively, the "Agents").
The REIT LP paid the Agents a fee equal to 6% of the gross proceeds of the Offering.
The REIT granted the Agents an over-allotment option to purchase up to an additional 1.5 million Units at a price of $5.00 for a period of up to 30 days after the closing of the Offering. If the over-allotment option is exercised in full, the total gross proceeds to the REIT LP will increase to $57.5 million.