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Elme Communities lands $250M buyer for Alexandria apartment complex
The new deal, set to close by Sept. 14, helps Elme restore repayment momentum on a $520M term loan from Goldman Sachs.
Elme Communities has entered into an agreement to sell its Riverside Apartments in Alexandria, Virginia, to a new buyer for $250M after an earlier transaction fell through, according to the companys SEC filing. The deal covers the 1,222-unit Riverside Apartments and related undeveloped land, and is expected to close no later than Sept. 14, subject to an inspection period and other closing conditions. Elme said the agreement is $30M less than the collapsed deal.
Elme noted that the refreshed contract improves certainty around when it can repay a $520M term loan from Goldman Sachs. The REIT also updated its estimated payout to shareholders after withdrawing its prior estimate in June.
Elme began a liquidation plan last August, after agreeing to sell 19 properties to Atlanta-based Cortland and putting 10 other assets up for sale. In the latest filing, Elme said it has sold six remaining properties for roughly $294M in total gross proceeds, and three other properties are under contract with expected gross proceeds of $168M.
The outstanding term loan balance was $251M as of July 23, Elme said. Its updated payout estimate now ranges from $16.41 to $16.61 per common share, the third reduction this year, and it said net proceeds will be returned to shareholders when appropriate and at the boards discretion.