Real Estate Investment Trust
Maxus Realty Trust, Inc., a Real Estate Investment Trust (REIT)
Maxus Realty Trust, Inc. (“MRTI”), is a fully integrated Real Estate Investment Trust ("REIT") that is in the business of acquiring, investing, developing and redeveloping multifamily and commercial properties in Missouri, Arkansas, Oklahoma, Texas, Florida and Kansas. MRTI currently has ownership interests in 20 multifamily properties (5,109 apartment homes) and has 40,412 square feet of retail space.
MRTI's investment strategy has two components: constant monitoring of existing markets, and evaluation of new markets to identify areas with the characteristics that underlie rental growth. MRTI's strong financial condition supports its investment strategy by providing access to a range of capital alternatives. This enhances MRTI's ability to quickly shift its acquisition, development, and disposition activities to markets that will optimize the performance of the portfolio, thereby increasing their ability to generate cash flow for future investments. MRTI's common stock trades on the Pink Sheets, an over-the-counter, inter-dealer electronic quotation trading system at www.pinksheets.com (symbol: MRTI.PK).
September 17, 2014 – MRTI completed the acquisition of a 77% equity interest in Applewood Partners L.P., (“Applewood”), primarily from affiliates of MRTI’s board of trustees. Applewood owns the Ashbrooke residential apartment community in Ankeny, Iowa. Ankeny is located in suburban Des Moines. Ashbrooke includes approximately 149,000 square feet of rentable area spread over 196 apartment units and a variety of resident amenities. The acquisition was completed through MRTI’s wholly owned subsidiary, Maxus Operating Limited Partnership (“MOLP”). Limited Partners in Applewood representing 77% of the partnerships interest agreed to exchange their interest in the partnership for 18,295 MOLP Units valued at $65. An exchange offer was made to all of the limited partners on the same terms as to the MRTI affiliates. MRTI affiliates participating in the exchange represented a 67% ownership interest in the partnership. The MOLP Units may be redeemed for MRTI common stock (on a one-for-one basis) or cash, at MRTI’s election, after a holding period of at least one year. Applewood has assets with a fair value of approximately $12.3 million and a mortgage loan of approximately $9.4 million. The mortgage loan matures September 2024 and has a fixed interest rate of 4.04%. The financial results of Applewood will be reflected in the consolidated financial statements of MRTI.
On June 12, 2014, a wholly owned subsidiary of Maxus Realty Trust, Inc. has completed the acquisition of a 59% undivided interest in the Reserve at Tranquility Lake (Tranquility) residential apartment community in Pearland, Texas. Pearland is located in the greater Houston metropolitan area. Tranquility includes approximately 325,000 square feet of rentable area spread over 314 units and a variety of resident amenities. The 59% undivided interest in Tranquility was acquired by MRTI through a 1031 tax free exchange using funds made available from the sale of Kings Court/Terrace Acquisition, LLC (Kings Court), a wholly-owned subsidiary of Maxus Operating Limited Partnership, MRTI’s operating limited partnership. Kings Court, along with Grand Acquisition LLC, jointly purchased the balance of Tranquility as tenants-in-common for an aggregate purchase price of approximately $30.6 million. USA Tranquility Lake 2, LLC held a 4% tenant-in-common interest prior to the transaction and maintained its interest subsequently. Grand Acquisition LLC and USA Tranquility Lake 2, LLC, have related parties of MRTI as owners. The acquisition was financed with a $23.7 million mortgage loan and cash of approximately $6.9 million. The mortgage loan has a variable rate based on the 30 day LIBOR rate plus 225 basis points and a maturity date of June 2017. During the process all existing tenant-in-common owners were offered to stay in the transaction.
On January 24, 2014, three wholly-owned subsidiaries of Maxus Realty Trust, Inc., (the “Company”), Foothills Acquisition, I, LLC, Foothills Acquisition II, LLC and Foothills Acquisition III, LLC, completed the purchase of the multi-family 540 unit apartment complex located in Little Rock, Arkansas known as Foothills Apartments (the “Property”) for a total cash purchase price of $44.095 million, adjusted for standard prorations. The sale occurred pursuant to a Purchase and Sale Agreement (the “Purchase Agreement”) with Foothills Apartments Limited Partnership, Foothills II Apartments Limited Partnership and Foothills Apartments III, LLC (the “Sellers”) that was entered into on September 2, 2013. The Sellers are unrelated third parties. At closing, the existing three HUD mortgage loans on the Property in the approximate aggregate amount of $29.633 million were assumed and other prorated items and expenses were paid, resulting in net cash due from the Company of approximately $12.585 million.
MRTI will pursue acquisition opportunities within its core markets. In addition to these markets, MRTI may consider acquisition opportunities in other markets where marketplace trends would allow for future growth. MRTI typically acquires assets on an all-cash basis; however we will consider assumption of existing financing.
104 Armour Road
North Kansas City, MO 64116
P.O. Box 34729
North Kansas City, MO 64116