Post Properties, Inc. (NYSE: PPS) announced today the closing of its acquisition of the 360-unit Post South End™ apartment community. The community is located in the South End neighborhood of Charlotte, at the Bland Street station on Charlotte’s Lynx Blue Line, which provides light rail service to Charlotte’s major Uptown employment center.
Post South End™ is LEED Silver certified, and was completed in 2009. The community has average unit sizes of 847 square feet and is currently approximately 95% occupied. The community also features 7,612 square feet of retail space that is 100% leased to three restaurant/bar concepts.
The purchase price of the acquisition is $74 million, which the Company funded with available cash. The Company currently expects the yield over its first twelve months of ownership will be approximately 5%, after a 3% management fee and $300 per unit reserve.
Said Dave Stockert, CEO, “The Charlotte apartment market is performing very well, and we are pleased to add a high-quality, well-located community to the Post portfolio in that city. Post South End™ provides access to transit and a mixed-use environment that appeals to the young, educated professionals we look to attract and retain as our residents.”About Post Properties Post Properties, founded more than 40 years ago, is a leading developer and operator of upscale multifamily communities. The Company’s mission is delivering superior satisfaction and value to its residents, associates, and investors, with a vision of being the first choice in quality multifamily living. Operating as a real estate investment trust (“REIT”), the Company focuses on developing and managing Post® branded resort-style garden and high density urban apartments. Post Properties is headquartered in Atlanta, Georgia, and has operations in ten markets across the country. Post Properties has interests in 21,982 apartment units in 59 communities, including 1,471 apartment units in four communities held in unconsolidated entities and 1,810 apartment units in six communities currently under development or in lease-up. The Company is also selling luxury for-sale condominium homes in two communities through a taxable REIT subsidiary.