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.

With the closing of this transaction, San Mateo-based Glenborough has completed its transformation into an office and industrial REIT, with office and industrial properties now representing approximately 75 percent and 25 percent, respectively, of its total portfolio of 88 properties and 14 million sf.

The sale will bring Glenborough's total repurchases of common securities over the past 18 months to 18 percent of outstanding securities, at an average price of $16.66 per share. In addition, Glenborough is working to expand its presence in the San Francisco Bay Area through new acquisition and development projects.

Currently, the company is pursuing an existing 30,000-sf fully leased office campus built in 1999 on 19 acres in San Jose; a 255,000-sf fully leased industrial building on 13.6 acres in Burlingame; a 97-acre unimproved parcel in Hayward with a development potential of approximately 1.5 million-sf of office and R&D and a 2.3-acre mixed-use development site in Millbrae at the new hub of BART.

Instant Insights /

Glenborough Realty Trust Closes $400-Mil Multifamily Disposition

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