IRT entered into a contract to buy a 370 unit apartment complex in Waukeegan, IL for $29 million. Due diligence ends 1/22/14.
Purchase to be done with cash and Huntington Bank LOC.
I don't think IRT has enough cash (and or credit available) to do this deal and the OK properties..............maybe RAS will lend the money needed to close both deals........Thoughts?
95%+ occupancy. Visited the property website.........looks beautiful. Wish they told us the cap rate. Looks like RAS wants to roll up lots of properties..........IRT growing fast.....
I guess Jupiter can handle it.
This property's last major capital work was 2008. I guess the current ownerrs have held back on rent increases and RAS is confident that they can get them and that they will stick.........
The joking response was that they waited for James Sebra to go on vacation.
That said, I'm sure that Scott and team have a pretty clear sense of where the money will come from. It wouldn't surprise me if they have clear SEC feedback on when they can expect the secondary to be made effective. It wouldn't surprise me if RAS will, if needed, advance IRT the cash amount specified in the SEC secondary filing with the understanding that it would be converted into shares at the offering price.
And it is entirely possible that IRT backed away from the OK properties after doing due diligence. That's why you set up a due diligence period. The very fact that the period has expired without an announced closing should raise that possibility. I suspect, however, that, with the details of the OK purchase in the SEC secondary filing, the OK transaction has been made contingent on the secondary.