Cornerstone Steps Up Its Southern Holdings with Merger

RICHMOND, VA-Local REIT Cornerstone Realty Income Trust Inc. has made a move to expand its presence in the south with its recent signing of a merger agreement valued at $136 million with Augusta, GA-based Merry Land Properties. The tax-free merger deal, which is subject to the expected approval of Merry Land shareholders, will make Merry Land a wholly-owned subsidiary of Cornerstone. Merry Land’s compensation for being absorbed consists of $42 million in Cornerstone stock, as well as Cornerstone’s assumption of $94 million of Merry Land’s debt.

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.”