Pure Multi-Familly REIT has entered into an agreement to acquire a residential property in Dallas, Texas, for USD40 million.

The property, which consists of 288 residential units averaging 961 square feet each, was constructed in 2002.

“The property is located in the highly desirable residential area of Allen, Texas, which is in close proximity for two high-profile master-planned employment hubs in Northern Dallas, Legacy West and CityLine”, said Steve Evans CEO of Pure Multi-Family REIT.

“Further, the property improves our average portfolio age, and provides solid in-place cash flow with potential to execute our asset improvement strategy to increase unitholder value”, he added.

Pure Multi-Family REIT intends to fund the acquisition with proceeds from the divestment of Fairways at Prestonwood, and new first mortgage of approximately USD16.5 million.

The first mortgage financing is expected to bear a fixed interest rate of 3.27% per annum for a term of five years, and the acquisition is expected to complete in January 2017.

Once the property is inducted, Pure Multi-Family REIT’s portfolio will consist of 17 assets with 5,793 residential units.

Units of Pure Multi-Family REIT are currently listed on the TSX Venture Exchange at USD6.01 and CAD8.24.