#USA #Salt Lake City #Centerspace #multifamily REIT

Centerspace Expands into the Salt Lake City Market

Centerspace, a notable player in the real estate investment trust (REIT) sector, has recently made headlines with its strategic expansion into the Salt Lake City market. On May 30, 2025, the company finalized the acquisition of its first property in this area for the impressive sum of $149 million. This acquisition marks a significant milestone as it represents Centerspace's initial foray into Salt Lake City, adding to its growing presence in the Mountain West region.

The New Property: Sugarmont

The newly acquired community, named Sugarmont, comprises 341 homes and is situated within the highly desirable Sugar House submarket. Constructed in 2021, this property boasts exceptional walkability, providing residents easy access to vibrant retail, dining, and recreational venues. Sugarmont is not just a home; it is part of a thriving community that integrates convenience with lifestyle. The Salt Lake City metropolitan area appeals to Centerspace due to its robust economic backdrop, characterized by a blend of high-tech industries, finance, healthcare, and education.

Future Plans in Fort Collins

Additionally, Centerspace has plans for further growth, as it has entered into an agreement to acquire another community in Fort Collins, Colorado. This anticipated purchase involves a 420-home community with a projected closing date in mid-June 2025, at an estimated price of $132 million. Notably, this acquisition includes the assumption of about $76 million of long-term, below-market mortgage debt, enhancing the financial viability of this investment.

Selling Existing Properties

As part of its strategic overhaul, Centerspace is beginning to market its five-community portfolio in Saint Cloud, Minnesota for sale. This move signifies the company's gradual exit from the Saint Cloud market, allowing for a refocus of its resources and investments toward more lucrative opportunities in burgeoning areas like Salt Lake City. Moreover, sales are also anticipated from several communities within Minneapolis, indicating a comprehensive portfolio realignment designed to improve organizational efficiency and financial performance.

Financial Flexibility and Future Guidance

In light of these transactions, Centerspace has proactively enhanced its financial flexibility by exercising the accordion feature of its existing credit line. This expansion increases its borrowing capacity by $150 million, bringing it to a total of $400 million. The terms of the financial facility remain consistent, providing the company with ample resources to navigate this transitional period effectively. While management projects no significant operational disruption, the company acknowledges the necessity of evaluating the financial ramifications of these transactions, with updated guidance expected during the second quarter earnings release in 2025.

Quarterly Dividend Announcement

In addition to its acquisition strategy, Centerspace's Board of Trustees has declared a quarterly dividend of $0.77 per share or unit. This distribution will be payable on July 10, 2025, for shareholders and unitholders recorded by the close of business on June 27, 2025. This decision reflects the company’s commitment to providing value to its investors while simultaneously pursuing aggressive growth strategies.

About Centerspace

Founded in 1970, Centerspace is dedicated to owning and operating apartment communities with a focus on delivering quality homes rooted in integrity and service. The company currently manages 72 properties encompassing 13,353 homes across various states, including Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota, and now Utah. Its recognition as a top workplace for five consecutive years reinforces its reputation as a leading employer in the region.

For additional information, visit Centerspace's official website or contact Investor Relations at Josh Klaetsch, (952) 401-6600.

Conclusion

Centerspace's strategic maneuvers into new territories and the marketing of existing assets symbolize a pivotal shift in its operational strategy. With a solid foundation in well-regarded markets and a proactive approach to financial management, Centerspace positions itself not just for present success but for future growth across the Mountain West and beyond.