Colonial Properties Trust (NYSE: CLP), today announced the completion of multiple transactions under its multifamily asset recycling strategy. The company completed the sale of four apartment communities for total proceeds of $95.4 million and acquired two Class A apartment communities for a total of $67.3 million.
The company acquired the 306-unit Colonial Reserve at Las Colinas (formerly Canal Side Lofts) located in Dallas, Texas, for $42.8 million, and the 272-unit Colonial Grand at Canyon Ranch (formerly Escalon at Canyon Creek) located in Austin, Texas, for $24.5 million. The apartment communities have an average age of 7 years and an average monthly rent of approximately $1,075 per unit.
Colonial Reserve at Las Colinas is a mid-rise apartment community that is located in the Las Colinas central business district. The community amenities include a clubroom, structured parking, infinity edge pool, fitness center, movie theatre, granite countertops, private balconies and urban and waterscape views. The apartment community was built in 2006 and was 96 percent occupied at the time of acquisition.
Colonial Grand at Canyon Ranch is located in the northwest sub-market of Canyon Creek in Austin, Texas. The community amenities include a clubhouse, fitness center, large pool and spa, pool-side grilling area with stone fireplace, and a covered veranda. The apartment community was built in 2003 and was 88 percent occupied at the time of acquisition.
The company sold the following properties: the 425-unit Autumn Hill in Charlottesville, Virginia; the 229-unit Colonial Village at Canyon Hills in Austin, Texas; the 250-unit Colonial Village at Highland Hills in Raleigh, North Carolina; and the 476-unit Heatherwood in Charlotte, North Carolina. The four properties had an average age of 31 years and an average monthly rent of approximately $695 per unit.
Thomas H. Lowder, Chairman and Chief Executive Officer, added, “These transactions enhance the multifamily portfolio by lowering the average age of the entire portfolio by approximately one year, increasing operating margins and average rent per unit, reducing capital expenditure requirements and improving the long-term growth profile of the company.”