Parkit Enterprise Inc. (“Parkit” or the “Company”) (TSX-V: PKT) (OTCQB: PKTEF) - is pleased to announce the successful closing of the Expresso Airport Parking acquisition (“Expresso”), previously announced on April 7, 2014 for a total purchase price of US$18,600,000. Expresso is a 14-acre off-airport parking facility located in San Leandro, California servicing the Oakland International Airport.
The acquisition price represents a capitalization rate of 8.9% on trailing twelve month net operating income of US$1.65 million.
The purchase was funded with a new US$13,200,000 first mortgage. The fixed-rate loan bears interest at 5.4%, amortizes over 30 years and matures in 2019. US$5,000,000 debt financing announced on September 5, 2014 and US$400,000 in cash completed the transaction.
Expresso represents the first asset close into the parking acquisition platform with Parking Real Estate, LLC, our partner entity represented by senior executives from Propark America.
“Expresso will be a cornerstone asset for our private equity platform.” - Rick Baxter, CEO, Parkit.
David Schmid, Chief Investment Officer of Propark America states, “This transaction is the first of many in a deep pipeline of quality, income-producing assets.”
Parkit Enterprise Inc. is a listed private equity real estate company that acquires and aggregates income-producing real estate in the parking sector.