MINOT, N.D., May 7, 2013 (GLOBE NEWSWIRE) -- Investors Real Estate Trust (NYSE: IRET, IRETPR, IRETPRB) announced today that its operating partnership, IRET Properties, recently completed its acquisition of Whispering Ridge Apartments, a nine-building, 336-unit apartment property constructed in 2010 on approximately 18 acres in northwest Omaha, NE. With this acquisition, IRET Properties now owns approximately 1,370 apartment units in the Omaha/Lincoln area, IRET's largest apartment market. IRET is continuing to focus its acquisition and development efforts on the markets in which it currently operates, in accordance with the company's strategic plan.
The Whispering Ridge Apartments property was acquired for a purchase price of approximately $28.3 million, of which approximately $2.5 million consisted of UPREIT exchange contributions. Whispering Ridge Apartments will be internally managed by IRET Properties.
IRET also announced today the recent completion of the acquisition by IRET Properties of the Alps Park Apartments in Rapid City, SD for a purchase price of approximately $6.2 million, including the issuance of UPREIT units of IRET Properties valued at approximately $3.3 million. The property was constructed in 1995, and consists of 71 apartment units on approximately 3.23 acres. The Alps Park Apartments will also be internally managed by IRET Properties. In addition to the recently-acquired Alps Park Apartments, IRET Properties also owns the 109 unit Canyon Lake Apartments and the 90 unit Pointe West Apartments in Rapid City.
Also announced was IRET Properties' recent acquisition of approximately two acres of vacant land in Golden Valley, MN for a purchase price of $2.1 million. The parcel of land, at the Xenia Avenue/Golden Hills Drive intersection, is located across the street from IRET's Golden Hills Office Center, located near the Interstate 394/Xenia exchange. IRET currently plans to construct an apartment property on this parcel.
Separately, IRET announced today the recent sale of a senior housing facility from the company's commercial medical portfolio. The Stevens Point Senior Housing property, initially purchased in 2006, is located in Stevens Point, WI, and was sold for approximately $16.1 million to its current tenant, following the tenant's exercise of the purchase option in its lease with IRET. Net cash to IRET from the sale, following debt repayment, was approximately $6.5 million.
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, Minnesota and Omaha, Nebraska.
Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although IRET believes the expectations reflected in the forward- looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained, due to factors including, but not limited to, the risk factors described in our Annual Report on Form 10-K, and include risks that we may choose not to proceed with planned development projects, or may not be able to proceed with or obtain necessary approvals or financing for planned development projects, and that completion of anticipated development projects may cost more, take more time to complete, or fail to perform as expected; and also include risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. We make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission.
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