BIRMINGHAM, AL-Colonial Properties Trust hasagreed to sell 18 apartment communities to ElcoHoldings for $338 million. The price represents a 6% caprate for the portfolio, which consists of 5,659 units in Georgia,North Carolina, Texas and Virginia.
The REIT says the deal is part of its ongoing strategy torecycle older multifamily assets to improve the average age, marginand capital expenditure requirements of its portfolio. Theproperties under contract have an average age of 25 years.
According to a research note from Sandler O'Neill +Partners LP, the deal allows Colonial Properties Trust torecycle its capital into higher quality assets. Moreover, the firmsays the disposition is “essentially neutral” to the REIT’s NAV.Currently, Colonial Properties Trust is trading at an implied 5.7%cap rate.
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