Henderson-based trust buys Texas property

MVP real estate investment trust has purchased a 376-unit storage facility near Austin, Texas, for $3.5 million, the first acquisition made by the Henderson-based REIT.

The storage facility was built in 2000 and is comprised of 12 buildings on 4 acres totaling 52,000 square feet, with 90 percent occupancy.

"This acquisition is an example of the type of properties in which we are seeking to invest," Mike Shustek, chairman and chief executive officer of MVP REIT, said in a statement.

The publicly registered REIT reached its minimum offering of $3 million in shares of its common stock by mid-December, raising nearly $4.1 million.

MVP announced it will start paying monthly cash distributions to stockholders beginning in January at an annualized rate of 54 cents a share, or 6 percent, based on a purchase price of $9 a share.

However, no assurance can be given that distributions will continue to be paid at this rate, Shustek said. The board of directors may at any time change the distribution rate or suspend payment of distributions.

Shustek, former CEO of Vestin Mortgage, initiated the offering that includes a maximum of $500 million in shares sold at $9 a share. Initial subscriptions were placed in escrow until the minimum offering was reached.

MVP intends to use the proceeds from the offering to invest in a diversified portfolio of income-producing commercial real estate properties and loans, primarily focusing on assets in the West and Southwest.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.