FOLLOWING its successful $1.552-billion (US$10 million) additional public offering (APO) in June, Kingston Properties Limited (KPREIT) has completed its second multi-family unit acquisition in Atlanta, Georgia, with the Apex Development Group LLC.

Its subsidiary, Kingston Properties Miami LLC, entered into a partnership agreement with Apex and formed Polaris at East Point Partners LLC (Polaris EP) which acquired a 118-unit multi-family property in East Point, Atlanta, on July 13. KPREIT has a majority 45 per cent stake in Polaris EP, which was acquired for US$12.7 million ($1.94 billion) through a mixture of debt and equity from the partners. The property is 100,200 square feet and represents KPREIT’s first acquisition in 2022.

It represents a value-added opportunity for KPREIT, with the property set to undergo phased improvement over the next two years to increase the tenant base in an environment with a 7.5 per cent average annual rent growth.

This brings the total units held jointly with Polaris to 273, as the partners target 1,000 units by 2024. KPREIT, Apex and Treevita Holdings LLC acquired a 155-unit multi-family property in July 2021 for US$15.5 million, with KPREIT holding a 38 per cent stake in Polaris at Camp Creek Partners LLC. It was financed by 75 per cent debt and 25 per cent equity from the partners. KPREIT’s stake was valued at US$2.24 million at the end of 2021, with the company experiencing US$413,265 in fair value gains and a dividend of US$7,000.

KPREIT is currently aiming to grow its balance sheet to US$100 million ($15.26 billion) by 2025, as well as having one million square feet under ownership in the future. In 2021 KPREIT had 479,000 sq ft owned. It sold a unit in the W, Fort Lauderdale, for US$497,250 and has only two condo units left in Florida coming from the high of 27 nearly five years ago.

KPREIT is looking to have a target real estate portfolio of 65 per cent value added, 20 per cent core/stabilised, and 15 per cent greenfield. It is currently exploring two additional investment targets in the Cayman Islands, with the development of Gum Tree 5 set to be complete in December. The units are to be acquired for US$3.13 million, with the company depositing US$1.23 million on the property. All of KPREIT’s investment properties are fully tenanted after its East Ashenheim Road property became fully leased in February.

KPREIT had a total asset base of US$50.95 ($7.83 billion) at the end of March and shareholders’ equity of US$33.35 million. The APO resulted in KPREIT gaining 2,511 new investors, surpassing the 982 shareholders it had before. A total of 206,956,366 shares were listed on the Jamaica Stock Exchange on July 8. The company’s share price is down 27 per cent year to date to $6.59 with a market capitalisation of $5.83 billion.