LAS VEGAS, July 31, 2013 (GLOBE NEWSWIRE) -- MVP REIT Inc. announced today it has completed the first acquisition in a $13.5 million, six parking facility portfolio.
The downtown Fort Lauderdale, Fla. property is an approximately 0.75-acre parking lot acquired for $3.4 million. Located at 208 SE 6th Street, the 32,750-square-foot site includes a 66-space car lot and 4,017-square-foot office building directly across from the Broward County Courthouse.
"Parking facilities generate more than $20 billion in cash flow nationwide, according to the International Parking Institute," said Mike Shustek, chairman and CEO of MVP REIT. "Their relatively low cost of capital, minimal labor expense and ability to respond quickly to inflation make them attractive investments."
MVP REIT and Vestin Realty Mortgage II Inc. formed a limited liability company to purchase the parking lot, which is owned 68 percent by Vestin and 32 percent by MVP REIT. Percentages were based on their capital contributions. MVP REIT and Vestin have also formed limited liability companies to acquire the additional five parking facilities. The ownership of those limited liability companies will be based on the capital contributions of each of Vestin and MVP REIT.
The remaining five properties in the portfolio are expected to be acquired on or around September 10, 2013. The parking facilities are located in Baltimore, Md.; St. Louis and Kansas City, Mo.; and two in Memphis, Tenn. They are currently leased to operators under triple net leases.
About MVP REIT, Inc.
MVP REIT intends to operate as a publicly registered, non-traded hybrid real estate investment trust. It is currently conducting a public offering of up to 55,555,556 shares of its common stock at $9.00 per share and up to an additional 5,555,556 shares of its common stock for issuance under its distribution reinvestment plan at $8.73 per share.
MVP REIT intends to use the proceeds from the offering to invest in a diversified portfolio of income producing commercial real estate properties and loans secured by income-producing commercial real estate as well as to pay expenses and fees associated with the offering.
Forward-looking statements
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "plan", "project", "should", "will", and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: volatility in the debt or equity markets affecting our ability to acquire or sell real estate assets; national and local economic, business and real estate market conditions, including the likelihood of a prolonged economic slowdown or recession; the ability to maintain sufficient liquidity and our access to capital markets; our ability to identify, successfully compete for and complete acquisitions and loans; and the performance of real estate assets and loans after they are acquired. Although each of Vestin and MVP believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, they can give no assurance that the expectations will be attained or that any deviation will not be material. Neither Vestin nor MVP undertake any obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in expectations. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.