The sales are simply in keeping with United Dominion's capital recycling strategy for new buys, common stock repurchases and debt reduction. In 1999, properties valued at more than $230 million had been sold followed by another $215 million in year 2000 divestitures.

United Dominion still owns 23 properties in Houston and, says Landis, there are plans to reinvest in the holdings. Most of the apartment complexes--which average 226 units--are located in Houston, but some are in the city's suburbs of Richmond, Texas City, Webster, Bay City, Friendswood and Tomball.

In Montgomery, AL, United Dominion has sold the 242-unit Three Fountains, built in 1973. The Maryland property, Woodside, is a 366-unit complex built in 1966 and located in Baltimore. Three properties have been hawked in Roanoke, VA: the 131-unit Northview, constructed in 1969; the 215-unit Laurel Ridge, built in 1971; and the 108-unit Craig Manor, developed in 1975.

The sale had occurred in concert with completion of a $100-million financing and an increase in the company's share repurchase program. The $100-million unsecured term loan, which carries an 8.125% interest rate, had been used to repay notes that had matured in fourth quarter 2000. The loan matures in May 2003, with extension clauses. For the new term loan, First Union Securities has served as the agent on behalf of the participating lenders, which also include Bank of America, Key Bank, PNC Bank and SunTrust.

Walsh says sale proceeds will continue to fund common stock repurchases, but the bulk will be applied to debt reduction. In fourth quarter 2000, approximately one million shares of common stock had been bought at an average price of $9.71 per share. The board has authorized the repurchase of an additional 5.5 million shares, taking the total to 6 million shares and representing about 5% of the outstanding stock total.