“This is our second development in as many quarters and helps us unlock the value of the undeveloped land on our books,” Lowder explained.

In addition, the REIT anticipates acquisition activity of $100 million to $150 million in 2011. The company already is within striking distance of its goal since it has already acquired $93 million in apartment properties.

All three purchases were funded through a combination of Colonial Properties’ unsecured credit facility and proceeds received from shares issued under the company’s most recent “at-the-market” equity offering program.

The REIT announced a $100 million ATM program in December 2010 and completed it for an average price of $19.40 per share. Earlier this week, the company’s board of trustees authorized a new ATM program providing for the issuance of up to an additional $75 million in common shares.

“The three apartment properties acquired in the first quarter are prime examples of the opportunities we are looking for,” Lowder added.

In February 2011, Colonial Properties acquired the 336-unit Colonial Grand at Wells Branch in Austin, TX, for $28.4 million. The apartment community was built in 2008 and was 97% occupied at the end of the first quarter 2011.

The REIT also acquired the 236-unit Colonial Grand at Cornelius in Charlotte, NC, for $23.6 million. Built in 2009, the community was 96.2% occupied at the end of the first quarter 2011. And, in March 2011, the company acquired the 341-unit Colonial Grand at Palm Vista, a class A apartment community located in Las Vegas. The total purchase price was $40.9 million.

“We have been thinking about acquisitions less in terms of current cap rate and more in terms of the growth potential that we could experience over the next couple of years,” Lowder said. “We still feel like we’re buying at or maybe slightly below replacement cost. So we like the basis, we like these markets long term and we think we’ve got upside in these acquisitions.”