Sequentially, multifamily same-property NOI for the first quarter 2012 increased 0.3 percent compared with the fourth quarter 2011, with revenues increasing 0.6 percent and expenses increasing 1.1 percent compared with the prior quarter. The increase in expenses is primarily due to property taxes and repair and maintenance expenses.

Asset Recycling Transactions

In January 2012, as previously announced, the company acquired Colonial Grand at Brier Falls, a 350-unit Class A apartment community located in Raleigh, North Carolina, for a total purchase price of $45.0 million. The apartment community was built in 2008. The purchase was funded with proceeds from asset dispositions and borrowings on the company’s unsecured credit facility.

In February 2012, the company disposed of its 25 percent interest in Colonial Promenade Madison, an 111,000-square-foot retail center located in Huntsville, Alabama, to one of its joint venture partners for $3.0 million in cash. The property was unencumbered. Net proceeds from the sale were used to repay a portion of the outstanding balance on the company’s unsecured credit facility.

Development Activity

Construction continued during the quarter on three wholly-owned apartment communities: Colonial Grand at Hampton Preserve, a $58.3 million development with 486 units in Tampa, Florida; Colonial Grand at Double Creek, a $31.7 million development with 296 units in Austin, Texas; and Colonial Grand at Lake Mary (Phase I), a $30.3 million development with 232 units in Orlando, Florida.

During the quarter, the company started construction on two wholly-owned apartment communities: Colonial Reserve at South End, a $59.3 million development with 353 units in Charlotte, North Carolina, and Colonial Grand at Lake Mary (Phase II), a $13.9 million development with 108 units in Orlando, Florida. Colonial Reserve at South End is scheduled for delivery in the fourth quarter 2012 and projected stabilization is expected in the fourth quarter 2014 and Colonial Grand Lake Mary (Phase II) is scheduled for delivery in the fourth quarter 2012 and projected stabilization is expected in the first quarter 2014.

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