Centerspace announced a significant strategic expansion, closing on the acquisition of Sugarmont, a 341-home community in Salt Lake City, UT, for $149 million on May 30, 2025. This transaction marks the company's entry into the Salt Lake City market, which is characterized by a diverse economic base and robust job growth. The Sugarmont property, built in 2021, is located in the desirable Sugar House submarket.
The company also signed an agreement to acquire a 420-home community in Fort Collins, CO, for approximately $132 million, with closing anticipated in mid-June 2025. This acquisition includes the assumption of approximately $76 million of long-term, below-market rate mortgage debt. These acquisitions are expected to enhance Centerspace's portfolio quality and growth profile within the Mountain West region.
To fund these strategic moves, Centerspace expanded its Unsecured Credit Facility by $150 million, increasing its borrowing capacity to $400 million. Concurrently, the company commenced marketing for sale its entire five-community portfolio in Saint Cloud, MN, signaling an exit from that market. Centerspace also plans to market several communities from its Minneapolis portfolio for sale, as part of its capital recycling initiative.
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