When all is said and done, Cornerstone will have added a total of 9 apartment complexes accounting for nearly 2,000 residential units in Augusta, GA and Charleston, SC, which is a new market for Cornerstone. "Charleston and Savannah are strong secondary markets with excellent employment and population growth prospects," explains Cornerstone chairman and CEO Glade M. Knight. "In addition, some of the assets being acquired are new class A communities that I believe are among the highest quality properties in these two markets."

Cornerstone will also inherit Merry Land's third-party property management company, and undeveloped property and ownership interests in two joint venture concerns. When the deal closes sometime next quarter, Cornerstone's portfolio will consist of 90 multi-family complexes totaling about 23,400 apartment units, and will cover markets in Georgia, North Carolina, South Carolina, Texas and Virginia. The arrangement between the two companies, however, extends beyond existing properties. Part of the deal includes the creation of Merry Land & Investment Co. LLC, which will co-develop three class A properties with Cornerstone in Savannah and Charleston. The new private firm will also take possession of designated properties from Merry Land Properties.