Grubb & Ellis Apartment REIT Acquires The Myrtles at Olde Towne in Portsmouth,
Virginia
SANTA ANA, Calif., Dec. 31 /PRNewswire-FirstCall/ -- Grubb & Ellis
Apartment REIT, Inc. has acquired The Myrtles at Olde Towne in Portsmouth,
Virginia. The acquisition closed on December 21, 2007.
The Myrtles at Olde Towne is a 246-unit multifamily property totaling more
than 221,000 rentable square feet on approximately 10 acres. Built between
2004 and 2005, the property consists of six three-story apartment buildings
that offer five floor plans ranging in size from 751-square-foot one
bedroom/one bath units to 1,137-square-foot two bedroom/two bath units. Unit
amenities include balconies or patios, nine foot ceilings, track lighting,
walk-in closets, washer/dryers and built-in surround sound speakers.
Community amenities include a luxury clubhouse with veranda, modern movie
theater, state-of-the-art fitness center, billiards room with wet bar and a
resort-style swimming pool with fountain.
The Myrtles at Olde Towne is located two miles from Interstate 264 on the
border of the Olde Towne Portsmouth historic district. The property provides
413 parking spaces, including 72 garages, for a parking ratio of 1.6 spaces
per unit. The community is adjacent to the Naval Medical Center Portsmouth,
one of the largest and most modern U.S. Navy hospitals and one of the area's
major employers. The Myrtles at Olde Towne is currently 89 percent occupied.
Portsmouth is a part of the Hampton Roads metropolitan statistical area,
which boasts a population in excess of 1.6 million people and an unemployment
rate of approximately three percent, significantly less than the national
average, according to the U.S. Department of Labor's Bureau of Labor
Statistics. While the military and government are main drivers of the local
economy, accounting for nearly 21 percent of employment, recent growth in the
area has transformed Portsmouth into a major shipping hub with a diverse
economy. According to Moody's Economy.com, average household income in the
region exceeds $96,000.
"The Myrtles at Olde Towne is a wonderful property that adds additional
economic strength to Grubb & Ellis Apartment REIT," explained Stanley J.
Olander, president, chief executive officer and chairman of the REIT. "This
acquisition is also significant because it provides further geographic
diversity to our growing portfolio of premier apartment communities."
Grubb & Ellis Apartment REIT offers a monthly distribution of 7.0 percent
per annum, and is seeking to acquire properties in geographically-diverse
markets throughout the United States that are poised for strong population and
economic growth. As of December 14, 2007, Grubb & Ellis Apartment REIT has
sold approximately eight million shares of its common stock for more than $80
million through its initial public offering, which began in the third quarter
of 2006.
Grubb & Ellis Apartment REIT purchased The Myrtles at Olde Towne from The
Myrtles at Olde Towne, L.L.C. Financing was primarily provided by Freddie Mac.
About Grubb & Ellis
Grubb & Ellis Company (NYSE: GBE), one of the largest and most respected
commercial real estate services companies, is the sponsor of Grubb & Ellis
Apartment REIT, Inc. With more than 130 owned and affiliate offices worldwide,
Grubb & Ellis offers property owners, corporate occupants and investors
comprehensive integrated real estate solutions, including transaction,
management, consulting and investment advisory services supported by
proprietary market research and extensive local market expertise.
Grubb & Ellis and its subsidiaries are leading sponsors of real estate
investment programs that offer individuals and institutions the opportunity to
invest in a broad range of real estate investment vehicles, including
tax-deferred 1031 tenant-in-common (TIC) exchanges, public non-traded real
estate investment trusts (REITs) and real estate investment funds. As of
September 30, 2007, nearly $3 billion in investor equity has been raised for
these investment programs. The company and its subsidiaries currently manage a
growing portfolio of more than 214 million square feet of real estate. In
2007, Grubb & Ellis was selected from among 15,000 vendors as Microsoft
Corporation's Vendor of the Year. For more information regarding Grubb & Ellis
Company and the merger, please visit http://www.grubb-ellis.com.
THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER
TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
SOURCE Grubb & Ellis Apartment REIT, Inc.
Jill Swartz of Grubb & Ellis Apartment REIT, Inc., +1-714-667-8252, ext. 251,
jill.swartz@grubb-ellis.com
