The purchase price represents a cap rate of 9.07%. "This is part of an overall multifamily asset sale that we expect will be in the range of $100 million to $150 million," Colonial chairman/CEO Thomas H. Lowder tells GlobeSt.com. The overall cap rate is expected be under 9%.
"We are selling multifamily assets in smaller markets, thereby creating opportunities to reinvest the funds into other property types," Lowder says. Colonial will continue to manage the properties for CMS.
The 608-unit Alabama portfolio comprises the 104-unit, 21-year-old, 95.2% leased Colonial Village at Hillcrest in Mobile; the 200-unit, 25-year-old, 93%-leased Colonial Village at Monte D'Oro in Birmingham; and the 304-unit, 26-year-old, 94.4%-leased Ski Lodge in Tuscaloosa.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
