MVP REIT II, Inc. (the "Company"), through MVP Preferred Parking, LLC, an entity owned by the Company and referred to herein as the "Purchaser", entered into a purchase and sale agreement to purchase from System Property Development Company, Inc., and 1310 Congress Street, LLC, a multi-level parking garage consisting of approximately 500 parking spaces, together with a surface parking lot consisting of approximately 28 parking spaces and approximately 784 square feet of office space located in Houston, Texas, for a purchase price of $20.5 million, plus acquisition and financing-related transaction costs.  The Company owns a 100% equity interest in the Purchaser.

 

On June 29, 2017, the Purchaser completed the purchase, from System Property Development Company, Inc., and 1310 Congress Street, LLC, of the parking garage and surface parking lot under the terms of the purchase and sale agreement.  The parking garage and surface parking lot will be operated by iPark Services, LLC under long-term lease agreements (the "Leases").  The purchase price was funded from MVP REIT, Inc and MVP REIT II, Inc's two lines of credit from KeyBank in the amount of $11,275,000 from the Unsecured Credit Facility Line of Credit and $6,000,000 from the Working Capital Line of Credit with interest rates per annum of 30 Day LIBOR + 2.5% and 4.5% respectively; a $500,000 loan from iPark Services, LLC who is the tenant under the Leases with a maturity date of September 30, 2017 at an interest rate per annum of 5.75%; a loan from the Company's Advisor, MVP Realty Advisors, LLC in the amount of $2,100,000 with a maturity date of June 29, 2018 and an interest rate per annum of 5%; a deferral of a $300,000 real estate commission due to JNL Parking for a period of three months at an interest rate per annum of 1%, with the remaining amounts funded through the Company'cash flow.