BIRMINGHAM, Ala.–(BUSINESS WIRE)– Colonial Properties Trust (NYSE:CLP – News), announced the completion of multiple transactions under its multifamily asset recycling strategy. The company completed the sale of six apartment communities for total proceeds of $105.8 million and acquired three apartment communities for a total of $93.5 million. The transactions enhance the multifamily portfolio by lowering the average age, increasing operating margins and average rent per unit, reducing capital expenditure requirements and improving the long-term growth profile.
The acquired properties include: the 278-unit Colonial Reserve at Medical District (formerly Cityville at Southwestern Medical District) in Dallas/Ft. Worth, Texas; the 316-unit Colonial Village at Beaver Creek (formerly Creekside Hills) in Raleigh, North Carolina; and the 312-unit Colonial Grand at Commerce Park (formerly Alexon Wellborn) in Charleston, South Carolina. The three apartment communities have an average age of 3.7 years.
The company sold the following properties: the 250-unit Colonial Grand at Sugarloaf and 434-unit Colonial Grand at McGinnis Ferry in Atlanta, Georgia; the 250-unit Colonial Village at Meadow Creek in Charlotte, North Carolina; and the 232-unit Summer Tree, 232-unit Brookfield and 328-unit Paces Cove apartment communities in Dallas/Ft. Worth, Texas. The six properties have an average age of 21.8 years.
“The agreement we disclosed in late July has allowed us to fund attractive multifamily acquisition opportunities through the sale of certain older multifamily assets,” noted Thomas H. Lowder, Chairman and Chief Executive Officer. “This transaction is consistent with our strategy of upgrading the multifamily portfolio.”