Adventus Opportunity Fund (“AOF”) by its Trustee, Adventus Opportunity Services Inc. (“AOSI”) is pleased to announce it has acquired its first property, a campus-style office development featuring four, 4-story, Class A buildings (“TownPark Commons”, or the “Property”) in the Kennesaw Town Center submarket of Atlanta, Georgia for consideration of US$73.25 million.
TownPark Commons is located in the high-growth Kennesaw submarket of northwest Atlanta. The Property is conveniently positioned near Kennesaw State University, and is situated between two interstate highways providing easy access from all points of the Atlanta metro area. TownPark Commons is 98% occupied, and has a stable and dedicated tenant base with a weighted average lease term of 8.2 years. Over the last 20 years the Property has averaged 92% occupancy and existing tenants have an average tenure of 15.2 years.
“TownPark Commons marks our first acquisition for Adventus Opportunity Fund, and we are very pleased to make a significant acquisition in the Kennesaw submarket of suburban Atlanta,” commented Rod Johnston, President and CEO of AOSI. “In January 2016, Adventus Realty Trust acquired the Barrett Lakes property in Kennesaw, and since that time, we have seen first-hand the desirable office market fundamentals in this submarket. Northwest Atlanta is one of the stronger office markets in metro Atlanta, and in the Kennesaw submarket there has been no significant construction over the past few years, allowing for upward pressure on rentals rates with reduced vacancies.”
The debt financing for the Property was initiated by JP Morgan which provided US$47.6 million of non-recourse first mortgage financing on a 5 year basis at a fixed interest rate of 4.86% with no principal payment amortization over the term of the loan.
About Adventus Opportunity Fund and Adventus Realty Trust (“ART”)
AOF and ART are both Canadian based private Real Estate Investment Trusts (REITs) and are focused on US income producing commercial real estate in select suburban office markets. For more information on the Adventus entities, including our team and corporate strategy, we invite you to visit our website at www.adventusrealty.com.
Cautionary Statements Regarding Forward-Looking Statements
This press release may contain forward-looking statements with respect to AOF and its operations, strategy, financial performance and financial condition, as well as with respect to future acquisitions of properties. These statements generally can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “forecast”, “expect”, “intend”, “would”, “could”, “if”, “may” and similar expressions. The actual results and performance of AOF and the acquisition discussed herein could differ materially from those expressed or implied by such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to AOF and persons acting on its behalf. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, changes in interest rates, competition and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to AOF and persons acting on its behalf.
Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, AOF specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
ADVENTUS OPPORTUNITY FUND
By its Trustee: ADVENTUS OPPORTUNITY SERVICES INC.
Per: Rodney B. Johnston, FCPA, FCA
President and Chief Executive Officer