North Kansas City, MO – August 25, 2015 – (RealEstateRama) — Maxus Realty Trust, Inc. (“MRTI”), a real estate investment trust with corporate headquarters located in North Kansas City, MO, has completed the acquisition of a controlling interest in Cape Fear Multifamily, LLC (“Cape Fear”). Cape Fear is a single purpose entity that owns the Astoria Apartment Homes (“Astoria”). Astoria is an apartment community located in Hope Mills, North Carolina that was built in 2011 and includes approximately 299,000 square feet spread over 272 apartment units. The apartment community is located approximately 7 miles from Fayetteville, North Carolina, the fifth largest city in North Carolina, and 14 miles from Fort Bragg military base, the largest Army base in the United States.
The acquisition was completed through a newly formed entity, Astoria Acquisition, LLC (“Astoria Acquisition”). Astoria Acquisition acquired a 62.5% interest in Cape Fear for a capital contribution of $3.15 million. MRTI holds an 80.96% interest in Astoria Acquisition and an entity controlled by David L. Johnson, MRTI’s Chairman, Chief Executive Officer, President and a Trustee of MRTI and the beneficial owner of more than 10% of MRTI’s issued and outstanding common stock, holds the remaining 19.04% interest. Cape Fear’s operating results will be consolidated by MRTI. Under the terms of the transaction, Astoria Acquisition is entitled to a preferred return of 10% on its $3.1 million capital contribution before any cash distributions are made to the members of Cape Fear.
Astoria has an existing mortgage loan totaling approximately $22.6 million. The loan is serviced and guaranteed by the Department of Housing and Urban Development (HUD). The loan has an interest rate of 5.6% and matures August 1, 2053. As a result of the property not meeting certain performance parameters required under the loan agreement, HUD required MRTI to maintain a cash collateral account totaling $0.7 million to secure the loan. The cash collateral account must remain in place until the loan agreement requirements are met. MRTI provided the cash collateral upon closing of this transaction. Under the terms of the transaction, MRTI will receive interest from Cape Fear of 10% on the cash collateral amount provided until such time as the cash collateral is released. MRTI is a real estate investment trust that is in the business of acquiring, investing, developing and redeveloping multifamily and commercial properties in Missouri, Arkansas, Oklahoma, Texas, Florida, Iowa, Kansas and North Carolina. MRTI has ownership interests in 24 multifamily properties (6,289 apartment homes) and has 40,412 square feet of retail space. MRTI’s common stock is quoted on the OTC Pink market tier of the OTC market, which operates an interdealer quotation system and electronic messaging service, called OTC Link®, for broker-dealers to trade OTC equity securities. Additional information about MRTI may be found at www.otcmarkets.com (symbol “MRTI”).
Media contact: Kelly Johnson, 816-805-5659, kjohnson (at) maxusprop (dot) com” kjohnson (at) maxusprop (dot) com
Investors contact: DeAnn Totta, 816-877-0812, dtotta (at) maxusprop (dot) com” dtotta (at) maxusprop (dot) com
104 Armour Road ? P.O. Box 34729 ? North Kansas City, MO 64116 816-303-4500 ? FAX 816-221-1829
Read more here: http://pressreleases.kcstar.com/release/messages/75350/#storylink=cpy