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CMCT is implementing a multifamily portfolio development strategy through the acquisition of three multifamily assets

Posted on by darion

CMCT (NASDAQ:CMCT and TASE:CMCT-L) today announced that it is expanding its multifamily portfolio with the planned addition of 696 apartments across three assets. The acquisitions support CMCT’s strategy to focus its portfolio on highly enhanced, multifamily and creative office assets in dynamic markets with high barriers to entry.

CMCT intends to acquire an interest in the 75-unit Parkview Apartments located at 1902 Park Avenue in the Echo Park neighborhood of Los Angeles. The transaction is scheduled to close in mid-February. Parkview Apartments are located adjacent to 1910 W. Sunset Blvd., an eight-story creative office development that was acquired by CMCT in February 2022.

In Oakland, CMCT is under contract to purchase Eleven Fifty Clay at 1150 Clay Street, a 16-story apartment building offering 288 market-rate residences. The acquisition is expected to be completed by the end of March. On January 31, 2023, CMCT completed the acquisition of Channel House, an eight-story, 333-unit apartment building at 40 Harrison Street.

CMCT believes it has an attractive pipeline of multifamily development opportunities with over 1,500 apartments. CMCT intends to leverage its procurement, distribution and development capabilities to grow its multifamily portfolio by making property-level equity investments with co-investors. CMCT believes that a small asset approach, in which CMCT can earn fee income and potentially a percentage of profits, is a compelling model for CMCT that will contribute to high returns on invested capital.

About CMCT

Creative Media & Community Trust Corporation (“CMCT”) is a real estate investment trust that owns, operates and develops premier multifamily and creative office assets in vibrant and growing communities throughout the United States. CMCT is a leader in the creative office industry, acquiring and developing properties serving high-growth industries such as technology, media and entertainment. CMCT leverages CIM’s expertise to acquire, develop and operate premium multifamily properties located in dynamic markets with similar business and employment characteristics to its creative office investments. CMCT also owns one hotel in Northern California and a lending platform that originates loans under the Small Business Administration’s (“SBA”) 7(a) lending program. CMCT is operated by subsidiaries of CIM Group, LP, a vertically integrated real estate owner and operator with multidisciplinary expertise and in-house capabilities in research, acquisitions, credit analysis, development, finance, leasing and on-site property management. (www.creativemediacommunity.com).

FORWARD-LOOKING STATEMENTS

This press release contains certain “forward-looking statements” within the meaning of Art. 27A of the Securities Act of 1933 and s. 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) to be covered by the safe ports so created. Such forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “project”, “target”, “expect”, “intend”, “may”, “believe”, “anticipate” “, “estimate”, “could”, “would”, “continue”, “seek”, “potential”, “forecast”, “seek”, “plan” or “should” or “goal” or its negative or other variations or similar words or phrases. Such forward-looking statements include, but are not limited to, statements regarding CMCT’s plans and objectives regarding future growth and prospects, the proposed acquisitions in Echo Park and Eleven Fifty Clay, and CMCT’s ability to earn fee income and a potential percentage of profits. There can be no assurance that the Echo Park or Eleven Fifty Clay acquisitions will be completed or that CMCT will be able to secure co-investments or on the terms of such co-investments, including amounts payable to CMCT. Such forward-looking statements are based on specific assumptions made by CMCT’s management in light of its experience as well as its perception of expected future developments and other factors it believes are appropriate in the circumstances. Forward-looking statements are necessarily estimates reflecting the judgment of CMCT’s management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include those related to (i) the timing, form and operational effects of CMCT’s development activities, (ii) CMCT’s ability to raise local rents to existing market rates and maintain or increase occupancy levels, (iii) fluctuations in market rents, (iv ) the impact of inflation and higher interest rates on CMCT’s business and profitability and (v) general economic, market and other conditions, including the possibility of a recession or economic downturn. Additional important factors that could cause CMCT’s actual results to differ materially from CMCT’s expectations are discussed in the “Risk Factors” section of CMCT’s Annual Report on Form 10-K for the year ended December 31, 2021 and CMCT’s Quarterly Report on Form 10-KQ for the period ended September 30, 2022. The forward-looking statements contained herein are based on current expectations and there can be no assurance that these expectations will be achieved. Assumptions regarding the foregoing include judgments regarding, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond CMCT’s control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions may be inaccurate and, therefore, there can be no assurance that the forward-looking statements contained herein will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements contained herein, the inclusion of such information should not be considered a representation by CMCT or any other person that CMCT’s objectives and plans will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made. CMCT does not undertake to update them to reflect changes that occur after their date of introduction.