Prospect Invests in Self-Storage Properties
Prospect Capital announced it recently invested in three separate real estate transactions an aggregate of $55.4 million in 16 properties through its private real estate investment trusts with three different co-investment property managers.
Two of these transactions included nine multifamily garden-style apartment real estate properties with a combined investment by Prospect of $44.8 million. In the other transaction, Prospect acquired seven self-storage properties for a $10.6 million investment.
The multifamily transactions involved the purchase of an eight-property portfolio in the Columbus, OH, area managed by a 25% equity co-investor property manager and one property in Fort Wayne, IN, managed by a co-investment property manager with whom Prospect has previously co-invested. The self-storage transaction involved the acquisition of a seven-property portfolio located in multiple cities in Michigan.
“These real estate investments continue Prospect’s strategy of selectively acquiring stabilized properties at a discount to replacement cost in markets with limited new construction pipelines and positive demographic and economic trends,” said Ted Fowler, Managing Director of Prospect Capital Management. “These rent-producing properties generate attractive and growing current yields (with long-term fixed rate financing), long-term capital appreciation potential, inflation-protecting income streams, and diversification across geography, construction vintage, and operating manager. We are actively screening new investment opportunities in real estate with a focus on properties involving diversified tenant bases that produce recurring and stable cash flow streams that we can distribute to our shareholders.”
Currently with over $7 billion of capital under management, Prospect has closed nearly $3 billion of new originations so far in calendar year 2014.