Silver Bay Realty Trust (SBY) Acquires Southeastern U.S. Home Portfolio in $41.5M Deal

September 21, 2016 8:03 AM EDT

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Silver Bay Realty Trust Corp. (NYSE:SBY) announced that it recently entered into a definitive agreement to acquire a portfolio of approximately 320 leased homes located in Atlanta, Tampa and Orlando for approximately $41.5 million in cash. The transaction will be financed using the Company’s existing $400.0 million credit facility. The Company plans to use proceeds from future non-core asset dispositions to pay down portions of its credit facility and maintain its long-term leverage target. Occupancy on the acquired portfolio approximates 95% and average existing rents approximate $1,215 per month and the purchase price per square foot approximates $72.

“We believe this portfolio is an attractive investment opportunity that will increase density in our existing markets and leverage our infrastructure,” said Thomas W. Brock, Silver Bay’s Chief Executive Officer. “We will continue to seek ways to optimize our portfolio in our core markets to improve our overall yield and drive increased cash flow.”

The acquisition is expected to close in 15-30 days, subject to the satisfaction of conditions to close.

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