NexPoint Residential Trust Inc. sold The Miramar Apartments, The Grove at Alban and Toscana for gross proceeds of $57.3 million to three separate unrelated buyers.
The company intends to use the net proceeds of roughly $26.7 million to repay the debt it incurred to acquire the a Houston portfolio for about $108 million.
The trust is also under contract to sell Twelve 6 Ten at the Park in Dallas. It aims to use the proceeds from the disposal to repay debt and complete the reverse 1031 exchange for Old Farm Apartment Homes.
In addition, the company entered into an interest rate swap transaction with KeyBank NA through its operating partnership, NexPoint Residential Trust OP LP, to hedge against the risk associated with its floating rate indebtedness.
The swap will become effective May 1 and terminated April 1, 2022. The company is required to pay fixed monthly payments of 1.961% calculated on a notional amount of $50 million. The counterparty is also required to make monthly floating rate payments based on LIBOR on the same notional amount.