MINOT, N.D., Feb. 5, 2013 (GLOBE NEWSWIRE) -- Investors Real Estate Trust (NYSE:IRET) (NYSE:IRETPR) (NYSE:IRETPRB) announced today that it has closed on a joint venture for the construction of an apartment project in Minot, North Dakota. IRET has a 51% interest in the Southgate Apartment project joint venture entity, which commenced construction of the project in September 2012. The Southgate Apartments project is to be completed in two phases, with a total of approximately 341 units. Phase I, the Landing at Southgate, consists of three approximately 36-unit buildings, and is expected to be completed in September 2013. Phase II, the Commons at Southgate, is currently expected to consist of an approximately 233-unit building to be completed in the spring of 2014. The project, which will have a mix of "A" and "B" finish levels and an amenity package including underground and detached parking, is being constructed by Roers Construction of Fargo, North Dakota. IRET currently estimates total costs for both phases of the project at $52.2 million. The development is located near IRET's Plaza 16 property (formerly IRET Corporate Plaza) in southwest Minot.
Additionally, on January 11, 2013 IRET acquired 2.16 acres of vacant land in Minot, North Dakota, for approximately $1.9 million. This parcel of land is adjacent to the Southgate Apartment project, and is intended for future commercial development.
Separately, IRET also acquired two adjoining parcels of vacant land in the Badger Hills area of Rochester, Minnesota. One parcel, comprised of approximately 20.6 acres of land, was acquired on December 14, 2012 for $775,000. The second parcel, comprised of approximately 3.83 acres of land, was acquired on December 20, 2012 for $275,000. IRET intends to construct apartments on this property.
On December 31, 2012, IRET acquired 48.41 acres of vacant land in Grand Forks, North Dakota, for approximately $4.3 million. The purchase price included an UPREIT contribution of $2 million, with the balance paid in cash. IRET intends to construct apartments on a portion of this land.
These recent acquisitions are part of IRET's strategic plan to acquire or develop accretive investments in its core markets.
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements regarding development plans, project design, configuration and sizing, expected construction completion dates and cost estimates. Actual results may differ materially from those projected in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, changes in market demand for rental units and the impact of competition and competitive pricing, changes in economic conditions, unexpected delays in the development and construction of the projects, changes in financing assumptions, unexpected difficulties in leasing, and other risks detailed in the Company's filings with the Securities and Exchange Commission (SEC). All forward-looking statements are made as of today, and the Company assumes no obligation to update this information. For more details relating to risk and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including the Company's most recent Report on Form 10-K for the fiscal year ended April 30, 2012, and quarterly reports on Form 10-Q for the quarters ended July 31, 2012 and October 31, 2012.
About Investors Real Estate Trust
Investors Real Estate Trust is an equity real estate investment trust. Its business consists of owning and operating income-producing multi-family residential and commercial properties located primarily in the upper Midwest. Investors Real Estate Trust is based in Minot, North Dakota, and has additional offices in Minneapolis and St. Cloud, Minnesota.
CONTACT: Lindsey Knoop Anderson Director of Investor Relations 1400 31st Ave SW, Suite 60 PO Box 1988 Minot, North Dakota 58702-1988 phone: 701.837.4738 fax: 701.838.7785 email:firstname.lastname@example.org
Source:Investors Real Estate Trust