Glenborough Realty Trust Closes $400-Mil Multifamily Disposition

SAN MATEO, CA-Glenborough Realty Trust Inc. has closed on the disposition of 37 apartment communities throughout Texas and other southern states that was announced in September. The purchasers were a number of affiliates of Westdales Properties America, I, Ltd., which owns and operates 38,000 apartment units around the country. The price paid was roughly $400 million.

The apartment portfolio that traded hands comprises 9,253 units, the bulk of which are concentrated in Texas. The Texas component comprises 5,422 units in 19 communities. The portfolio also includes 2,399 units in 13 properties located in North Carolina, Georgia and Tennessee. The balance of the portfolio comprises 1,432 units in six communities in Indiana, Arizona and Nevada.

Of Glenborough’s net proceeds from the sale, $43 million was used to purchase more than two million shares of Glenborough’s common stock. Another $259 million is being applied to existing mortgage debt either assumed or retired, and the remaining will be deposited into deferred Sec. 1031 exchange accounts.