BRT Realty Trust in $38.2M multifamily acquisition

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A joint venture headed by Great Neck-based BRT Realty Trust acquired a multifamily complex in Mississippi for $38.2 million, according to a company statement.

The 384-rental residence apartment complex known as Civic Center II is located in Southaven, Miss., a suburb of Memphis, Tenn. It’s located off Route 51 about 15 miles south of Graceland. The purchase price for the Civic Center property includes $30.6 million of mortgage debt. BRT holds a 60 percent interest in the acquiring joint venture. The company had previously acquired a majority interest in the adjacent Civic Center I apartment complex.

BRT also sold a 496-residence multifamily complex in Wichita, Kan., called Sundance for $30.4 million. The company estimates a net gain from the sale of about $5.3 million sometime in the fourth quarter of 2016.

Jeffrey Gould, BRT’s CEO said the Civic Center acquisitions give the company “a significant presence” in a highly desirable area.

“We coupled this acquisition with the disposition of a property that we believe has limited growth potential,” Gould said in the statement. “By selling the Kansas property now and reinvesting the proceeds in stronger properties, we can enhance long-term cash flow.”