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Prospect Capital Portfolio Company Invests $13 Million in Acquisition of 300 Unit Multifamily Apartment Community in Franklin, Massachusetts

NEW YORK, Dec. 15, 2016 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”) announced today that Prospect’s portfolio company National Property REIT Corp. (“NPRC”), together with a co-investor, recently acquired Union Place Apartments (“Union Place”), a multifamily property located in Franklin, Massachusetts, for $64.8 million in total asset value.

Jones Street Investment Partners, LLC (“Jones Street”), an established multifamily property management firm, provided 15% of the junior capital. NPRC, a private real estate investment trust (“REIT”) owned by Prospect, provided $13 million as the remaining 85% of the junior capital. Jones Street will serve as the day-to-day property manager for Union Place.

Union Place is a 300-unit garden-style multifamily complex built in 2005-2006 and located on 32 acres. Prospect and Jones Street plan on implementing a value-added investment program that includes in-unit upgrades.

Prospect invests in real estate property through investments of debt and equity in NPRC, a private REIT. Prospect’s portfolio company REITs in the past four years in the aggregate have invested $487.5 million in 23 separate real estate transactions across 63 properties, including 40 multifamily residential apartment properties (aggregating approximately 14,600 units), 12 self-storage properties, eight student housing properties, and three single tenant net lease facilities, totaling approximately 16.9 million rentable square feet.

“The Union Place acquisition continues NPRC’s strategy of selectively acquiring real estate assets in conjunction with established property managers, where the assets benefit from a highly diverse tenant base, stabilized cash flow, and 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 L.P. "These rent-producing properties benefit from long-term fixed rate financing to support a targeted strategy seeking increasing current yields on invested capital, long-term capital appreciation, inflation-protected income streams, and diversification across tenant count, geography, construction vintage, real estate sub-sector, and operating management.”

ABOUT PROSPECT CAPITAL CORPORATION

Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). Prospect is required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to Prospect could have an adverse effect on Prospect and its shareholders.

ABOUT JONES STREET

Jones Street Investment Partners, LLC (“JSIP”) is a real estate investment sponsor focused exclusively on multifamily assets in the Northeast. JSIP is located in the Boston, Massachusetts metro area.

JSIP enacts a proactive, thesis-oriented and data-driven approach to multifamily investing. Whereas most multifamily investment sponsors have reactive business models – following brokers from listing to listing – JSIP carefully analyzes geographic, demographic, and economic trends and considers them in the context of capital markets opportunities. This allows JSIP to formulate specific investment theses, which it then proactively looks to enact through proprietary deal sourcing. Since its founding in October 2014, JSIP has acquired around 1,500 apartment units and currently has over $250 million in assets under management.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Prospect’s control, and that Prospect may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and Prospect undertakes no obligation to update any such statement now or in the future.

For further information, contact: Grier Eliasek, President and Chief Operating Officer grier@prospectstreet.com Telephone (212) 448-0702

Source: Prospect Capital Corporation