Real Estate
Home›Real Estate›REITs›Camden Property Trust sells 11-property California por…
Camden Property Trust sells 11-property California portfolio for $1.63B
The Houston-based REIT said it will use the proceeds to pay down debt and reinvest via 1031 exchanges, while reporting 95.7% occupancy at quarter end.
Camden Property Trust sold an 11-property apartment portfolio in California for $1.63B, about seven months after it disclosed plans to exit the state, according to Bisnow. The portfolio includes 3,620 units across the Los Angeles-Orange County and San Diego-Inland Empire markets.
The sale covers the property at 3900 San Fernando Road in Glendale, California, with the buyer paying roughly $450,000 per unit. Camden announced the disposition alongside second-quarter earnings, after putting the assets up for sale in January with JLL and an asking price around $1.5B.
Camden said it expects the sale proceeds to be in line with its outlook and plans to use the proceeds to pay down debt and roll capital into new Sun Belt investments through 1031 exchanges. The company also said the California disposition was a significant strategic milestone, and noted it used proceeds in part to repurchase shares at a discount to net asset value and increase exposure to Sun Belt growth markets.
Beyond the deal, Camden reported that it ended the quarter with a portfolio of 167 properties and 56,695 units, excluding three projects under development, with occupancy of 95.7%. Same-store net operating income fell 1.4% year over year, while core adjusted funds from operations declined 8% year over year and 1.2% quarter over quarter to $145M.