Sequentially, multifamily same-property NOI for the third quarter 2012 decreased 0.2 percent compared with the second quarter 2012, with revenues increasing 2.2 percent and expenses increasing 5.9 percent compared with the prior quarter. The increase in expenses is primarily due to seasonal increases in utilities and repair and maintenance costs in the third quarter 2012 compared to the second quarter 2012.
Asset Recycling Transactions
In October 2012, the company purchased the 370-unit Colonial Grand at Research Park, a Class A garden style multifamily apartment community in Raleigh/Durham, North Carolina, for a total purchase price of $38.0 million of which $21.3 million was used to repay existing property-specific debt. The company previously had a 20 percent ownership interest in the property. As of September 30, 2012, the property was 94.1 percent occupied.
Additionally, on October 24, 2012, the company sold the 612,000-square-foot retail center Colonial Promenade Alabaster in Birmingham, Alabama, for $37.4 million.Development Activity During the quarter, the company completed construction of Colonial Grand at Hampton Preserve, a $52.2 million multifamily development with 486 units in Tampa, Florida. As of September 30, 2012, the property was 93.8 percent occupied. Construction continued during the quarter on six wholly owned apartment communities: Colonial Grand at Double Creek, a $31.7 million development with 296 units in Austin, Texas; Colonial Grand at Lake Mary (Phase I), a $30.3 million development with 232 units in Orlando, Florida; Colonial Grand at Lake Mary (Phase II), a $13.9 million development with 108 units in Orlando, Florida; Colonial Reserve at South End, a $59.3 million development with 353 units in Charlotte, North Carolina; Colonial Grand at Randal Park, a $57.0 million development with 462 units in Orlando, Florida; and Colonial Grand at Ayrsley (Phase II), a $9.1 million development with 81 units in Charlotte, North Carolina. Financing Activity On August 15, 2012, the company repaid $80 million of outstanding senior notes due 2012 bearing interest at 6.875 percent per annum with borrowings on the company’s unsecured credit facility.