BRT Apartments entered into an amended credit facility which increases to up to a total of $60 million the amount available to be borrowed for the acquisition of, and repayment of mortgage debt on, multi-family properties, increases the amount available to be borrowed for operating expenses to $25 million and extends the term of the facility to September 2025. The amended facility also reduces the interest rate to the prime rate, subject to a floor of 3.5% and requires compliance with certain additional financial covenants. Net proceeds received from the sale, financing or refinancing of BRT’s wholly-owned properties are required to be used to repay amounts outstanding under the facility.
The financing is led by VNB New York, an affiliate of Valley National Bank.
Jeffrey A. Gould, president and CEO at BRT Apartments, said. “We are pleased to further enhance the strength and financial flexibility of our balance sheet with this amended credit facility, which provides for increased capacity as we continue to pursue acquisition opportunities. We greatly appreciate the support of our banking partner and their continued confidence in our efforts to grow our portfolio. As we look ahead to the balance of 2022 and beyond, we believe that through our judicious and disciplined approach we will be able to successfully deploy capital to sustainably increase value for all of our stockholders.”