Adventus Opportunity Fund ("AOF") by its Trustee, Adventus Opportunity Services Inc. ("AOSI") is pleased to announce it has acquired its second property ("1600 Parkwood", or the "Property") in suburban Atlanta, for consideration of US$23.15 million. 1600 Parkwood is a stable, high quality asset with excellent tenancy located in the Cumberland Galleria submarket of suburban Atlanta. The Property is 90% occupied with a weighted-average lease term of 6.3 years.
1600 Parkwood is located in one of the most vibrant, high-growth submarkets of Atlanta, Georgia. The primary tenant of the Property is a highly decorated and locally established professional services firm, currently on a long-term lease and has occupied these premises for 18 years. The Property has excellent access to a deep surrounding amenity base of retail, dining, hospitality, and entertainment options. The Property is near the intersection of two of the submarket’s main arteries, providing efficient connections to all areas of metro Atlanta.
"1600 Parkwood is an excellent addition to the AOF Portfolio. In the first year of the new fund, AOF has now accumulated US$100 million of valuable properties in Atlanta. We continue to acquire stabilized properties, with below market rents, at a significant discount to their replacement cost," commented Rod Johnston, President and CEO of AOSI. "Furthermore, this Property is in close proximity to an existing building owned by Adventus Realty Trust (1000 Parkwood). These two sister buildings will be operated as a single property, providing meaningful operating expense synergies."
The debt financing for the Property was initiated by Bank of America which provided US$14.0 million of financing on a 5 year basis at a variable rate equal to LIBOR plus 190 bps per annum, with no principal payment amortization over the first three years 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