BRT Apartments Corp. Announces the Acquisition of Apartment Complex in Auburn, Alabama

Rhea-AI Summary

BRT Apartments Corp. (NYSE:BRT) has acquired 1322 North, a 214-unit Class A apartment complex in Auburn, Alabama for $36.5 million. The property, constructed in 2002, was purchased through a joint venture in which BRT holds an 80% equity interest.

The acquisition includes a $24.4 million mortgage with a 5.38% fixed interest rate, maturing in 2032. BRT contributed $10.7 million in equity, partially funded through a $7.0 million draw from its credit facility at 6.87% interest. The property is strategically located near Auburn University and East Alabama Medical Center, complementing BRT's existing Auburn property, The Village at Lakeside.

Positive

• None.

Negative

• Additional debt burden with $7.0 million drawn from credit facility at 6.87% interest
• Property is over 20 years old (constructed in 2002)
• Refinancing risk if unable to secure mortgage financings to pay off credit facility debt by March 2026

Insights

Real Estate Investment Analyst

BRT expands Auburn footprint with strategic $36.5M acquisition using efficient capital structure, strengthening Southeast market presence.

BRT's acquisition of the 214-unit 1322 North apartment complex for $36.5 million represents a strategic expansion in the Auburn market where they already have an established presence. The property's proximity to their existing Village at Lakeside complex creates operational synergies that should improve management efficiency across both properties.

The financial structure of this deal is particularly noteworthy. BRT secured a $24.4 million fixed-rate mortgage at 5.38% with interest-only payments until 2032, which preserves cash flow in the near term. Their 80% ownership stake through a joint venture structure allows them to maintain control while limiting capital exposure. The company contributed $10.7 million in equity, partially funded through their credit facility at 6.87%.

This acquisition aligns with BRT's stated strategy of targeting Southeast markets with favorable supply-demand dynamics. Auburn's two major employers - Auburn University and East Alabama Medical Center - provide stable demand drivers for rental housing in the area. The 2002 construction date suggests the property is mature but not aging, likely requiring moderate rather than extensive capital improvements.

With this addition, BRT now owns or has interests in 30 multi-family properties totaling 8,161 units across 11 states. The company's stated focus on driving AFFO (Adjusted Funds From Operations) and NAV (Net Asset Value) growth through portfolio integration indicates a disciplined approach to creating long-term shareholder value rather than simply increasing property count.

GREAT NECK, N.Y., July 21, 2025 (GLOBE NEWSWIRE) -- BRT APARTMENTS CORP. (NYSE:BRT), a real estate investment trust, today announced the acquisition of 1322 North, a 214-unit Class A apartment complex in Auburn, Alabama.

The acquisition of 1322 North complements BRT’s ownership of The Village at Lakeside, an Auburn, Alabama property it has owned since 2019. The properties are located one mile from each other and near the region’s two largest employers, Auburn University and East Alabama Medical Center. 1322 North was constructed in 2002 and consists of 214 apartment units contained in 14 two- and three-story residential buildings.

BRT acquired the property for $36.5 million (including a $24.4 million mortgage) through a joint venture in which it has an 80% equity interest. The mortgage matures in 2032, bears a 5.38% fixed interest rate, and is interest only through maturity. The joint venture contributed $13.4 million of equity for the transaction of which $10.7 million was contributed by BRT. In connection with its equity contribution, BRT borrowed $7.0 million from its $40 million credit facility which bears a current interest rate of 6.87%. BRT intends to pay off this outstanding balance through mortgage financings and refinancings from time-to-time through March 31, 2026.

Jeffrey A. Gould, President and Chief Executive Officer stated, “The purchase of 1322 North is another example of our strategy of investing in properties in the Southeast, especially in markets that are growing with low supply and high demand for quality. This acquisition is a continuation of our approach to drive, over-time, AFFO and NAV per share growth by investing in properties that we can seamlessly integrate with our existing portfolio.”

BRT is a real estate investment trust that owns, operates and, to a lesser extent, holds interests in joint ventures that own multi-family properties. As of July 21, 2025, BRT owns or has interests in 30 multi-family properties with 8,161 units in 11 states. For additional information on BRT’s operations, activities and properties, please visit its website at www.brtapartments.com.

Cautionary Note Regarding Forward Looking Statements:

Certain information contained in this press release, together with other statements and information publicly disseminated by BRT Apartments Corp. is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. We intend such forward looking statements to be covered by the safe harbor provision for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for the purpose of complying with these safe harbor provisions. Forward looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “may,” “will,” “could,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions or variations thereof. Information regarding important factors that could cause actual outcomes or other events to differ materially from any such forward looking statements appear in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and the reports filed with the Securities and Exchange Commission thereafter; in particular, the sections of such reports entitled “Cautionary Note Regarding Forward Looking Statements”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, included therein. In addition, anticipated mortgage financings and refinancings that will allow the Company to pay-off its credit facility debt may not be completed or generate sufficient net proceeds to pay-off such debt. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could materially affect the Company’s actual results, financial condition, cash flows, performance or future achievements.

Contact:

BRT APARTMENTS CORP.
60 Cutter Mill Road
Suite 303
Great Neck, New York 11021
Telephone: (516) 466-3100
Email: investors@BRTapartments.com
www.BRTapartments.com

FAQ

How much did BRT Apartments (NYSE:BRT) pay for the 1322 North complex in Auburn?

BRT Apartments acquired 1322 North for $36.5 million, including a $24.4 million mortgage and $13.4 million in equity contributions.

What is the structure of BRT's investment in the 1322 North acquisition?

BRT holds an 80% equity interest in the joint venture, contributing $10.7 million of the total $13.4 million equity investment.

What are the terms of the mortgage for BRT's Auburn property acquisition?

The $24.4 million mortgage has a 5.38% fixed interest rate, matures in 2032, and is interest-only through maturity.

How many properties does BRT Apartments own as of July 2025?

BRT owns or has interests in 30 multi-family properties with 8,161 units across 11 states.

How is BRT financing the equity portion of the 1322 North acquisition?

BRT borrowed $7.0 million from its $40 million credit facility at 6.87% interest, planning to pay it off through mortgage financings by March 31, 2026.