PHILADELPHIA--(BUSINESS WIRE)--Resource Real Estate Opportunity REIT, Inc. (“Opportunity REIT”), a non-traded real estate investment trust sponsored by Resource Real Estate, Inc. (“Resource Real Estate” or “RRE”), today announced the sale of Ivy at Clear Creek (“Ivy”).
The Opportunity REIT acquired Ivy for approximately $11.8 million in April 2013. The Ivy is a 244-unit apartment community located in the Clear Lake suburb of Houston, Texas, within the top rated Clear Creek Independent School District. The Opportunity REIT deployed new capital to renovate the property, including unit interiors upgrades and exterior improvements, in addition to adding professional property management expertise. On Feb. 17, the Ivy was sold to an unaffiliated third party buyer for approximately $19.4 million, generating a cash profit of approximately $4.0 million and an average annual return of 29.7 percent on behalf of the Opportunity REIT.
Kevin Finkel, President and COO of the Opportunity REIT, said, “The Opportunity REIT is designed to take advantage of the dislocation of supply and demand in the U.S. apartment market. The Ivy is a great example of a property located in a highly sought-after suburb with excellent schools but in an area lacking adequate supply of renovated, well-managed apartments with affordable rents. The Ivy represented a great opportunity for renovation and a chance to ultimately provide renters with an affordable, market rate rental with access to the many public services available in the Clear Lake area, including its top rated schools. We created tremendous value in this property and, as a result, were able to sell the Ivy at a considerable profit.”
About Resource Real Estate Opportunity REIT
Resource Real Estate Opportunity REIT acquires and operates a portfolio of multifamily real estate throughout the United States. Opportunity REIT is sponsored by Resource Real Estate, Inc., a firm that specializes in direct real estate investments, commercial real estate lending and global real estate securities. Resource Real Estate is a wholly owned subsidiary of Resource America (“RAI”)(NASDAQ: REXI).
About Resource Real Estate
Resource Real Estate (RRE) is a firm that specializes in direct real estate investments, commercial real estate lending and global real estate securities. For over two decades, RRE and its affiliates have managed real estate assets for institutional and individual investors. RRE and its parent company have offices in New York, Los Angeles, Denver, London, Singapore, Sydney as well as its headquarters in Philadelphia and additional locations across the US.
RRE owns and manages real estate assets with an aggregate value of approximately $4.6 billion. RRE is a wholly owned subsidiary of Resource America (“RAI”) (NASDAQ: REXI). As of September 30, 2015, RAI managed $21.7 billion in gross assets across various asset classes.
Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although RAI and RRE believe the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in RAI's reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. RAI and RRE undertake no obligation to update or revise any forward looking statement to reflect new or changing information or events.