PLYMOUTH, Minn.--(BUSINESS WIRE)--Silver Bay Realty Trust Corp. (NYSE:SBY) announced today that it recently entered into a definitive agreement to acquire a portfolio of approximately 320 leased homes located in Atlanta, Tampa and Orlando for approximately $41.5 million in cash. The transaction will be financed using the Company’s existing $400.0 million credit facility. The Company plans to use proceeds from future non-core asset dispositions to pay down portions of its credit facility and maintain its long-term leverage target. Occupancy on the acquired portfolio approximates 95% and average existing rents approximate $1,215 per month and the purchase price per square foot approximates $72.
“We believe this portfolio is an attractive investment opportunity that will increase density in our existing markets and leverage our infrastructure,” said Thomas W. Brock, Silver Bay’s Chief Executive Officer. “We will continue to seek ways to optimize our portfolio in our core markets to improve our overall yield and drive increased cash flow.”
The acquisition is expected to close in 15-30 days, subject to the satisfaction of conditions to close.
Silver Bay Realty Trust Corp.
Silver Bay Realty Trust Corp. is an internally managed Maryland corporation focused on the acquisition, renovation, leasing and management of single-family properties for rental income and long-term capital appreciation. Silver Bay owns single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas. Silver Bay has elected to be taxed as a REIT for U.S. federal tax purposes. Additional information can also be found on the company’s website: www.silverbayrealtytrustcorp.com.
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements may include the timing of the transaction and involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Factors that could cause actual results to differ include delays or a failure to close on all or a portion of the properties.
Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Silver Bay does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Silver Bay’s most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements concerning Silver Bay or matters attributable to Silver Bay or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.
Stockholders of Silver Bay, and other interested persons, may find additional information regarding the company at the SEC's website at www.sec.gov or by directing requests to: Silver Bay Realty Trust Corp., Attn: Investor Relations, 3300 Fernbrook Lane North, Suite 210, Plymouth, MN 55447, telephone (952) 358-4400.