BOULDER CITY, Nev., Sept. 17, 2013 (GLOBE NEWSWIRE) -- MVP REIT Inc., a publicly registered, non-traded real estate investment trust, announced today that it has formed a limited liability company with Vestin Realty Mortgage II, Inc. ("VRMII") to acquire a 299-unit self-storage facility located adjacent to Nevada Highway in Boulder City, Nev. The $5.2 million acquisition closed on September 12, 2013.
Originally constructed on nearly an acre in 1996, the facility quickly outgrew its original size, expanding in both 2000 and 2006. Today the five acre, 23-building facility consists of two separate sites, totaling approximately 112,000 rentable square feet, including 288 single-story units with an additional 11 open recreational vehicle spaces. The facility is currently more than 97 percent occupied.
"We believe self-storage facilities are a particularly attractive asset class because they can provide income, teamed with relatively low operating costs, and can provide a hedge against inflation since they rely on short-term leases," explained Mike Shustek, chairman and CEO of MVP REIT. "This facility has exhibited a history of strong growth, enjoys an excellent location, and operates at essentially full capacity."
MVP REIT and VRMII will hold a 51% and 49% interest, respectively in the limited liability company, which will be jointly managed by MVP Realty Advisors, LLC and Vestin Mortgage, LLC. Together, MVP REIT and VRMII financed $2,700,000 of the purchase with American Family Insurance Company through a 7-year term loan amortized over 25 years at 4.35% APR.
About MVP REIT, Inc.
MVP REIT intends to operate as a publicly registered, non-traded hybrid real estate investment trust. It is currently conducting a public offering of up to 55,555,556 shares of its common stock at $9.00 per share and up to an additional 5,555,556 shares of its common stock for issuance under its distribution reinvestment plan at $8.73 per share.
MVP REIT intends to use the proceeds from the offering to invest in a diversified portfolio of income producing commercial real estate properties and loans secured by income-producing commercial real estate as well as to pay expenses and fees associated with the offering.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "plan", "project", "should", "will", and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: volatility in the debt or equity markets affecting our ability to acquire or sell real estate assets; national and local economic, business and real estate market conditions, including the likelihood of a prolonged economic slowdown or recession; the ability to maintain sufficient liquidity and our access to capital markets; our ability to identify, successfully compete for and complete acquisitions and loans; and the performance of real estate assets and loans after they are acquired. Although each of Vestin and MVP believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, they can give no assurance that the expectations will be attained or that any deviation will not be material. Neither Vestin nor MVP undertake any obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in expectations. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.
Jill Swartz Spotlight Communications (949) 427-5172 ext. 701