(Read more on the multifamily market.)
ATLANTA-Locally based Post Properties Inc. has sold two multifamily communities, Post Ashford and Post Vinings, and placed a third 396-unit community under a joint venture with Dallas-based Crow Holdings Realty Partners IV LP. The two communities, with a combined total of 625 units, were sold as part of a Section 1031 transaction through an exchange intermediary.
The 222-unit Post Ashford is located at 3716 Ashford Dunwoody Rd. NE in Atlanta. The 403-unit Post Vinings is located at 3385 Atlanta Rd. SE in Smyrna. Financial terms and the buyer were not disclosed.
Under terms of the joint venture agreement, Post has a 25% ownership interest in the venture. Post will continue to manage the property under the Post brand name. Financial terms of the joint venture were not disclosed. The company expects to use the net proceeds from the sale and the joint venture to repay existing mortgage debt and borrowings under Post's unsecured line of credit. When reached for comment, Post officials would not comment further on the sales or the joint venture agreement.
This is the third property that Post has placed in the joint venture with Crow Holdings in 2007. The other two garden-style communities, built in 1996 and 1997, consist of 806 units with an average unit size of approximately 991 sf.
The company's joint venture strategy is intended to enable the company to access private capital to fund development, improve returns of equity, leverage the Post operating platform and brand and maintain a strong balance sheet with adequate liquidity. Post expects to continue seeking joint venture opportunities, principally to invest in a portion of its development pipeline and, on a selective basis, to invest in existing assets consistent with its capital diversification objectives, according to a released statement.
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