Cornerstone announced the stock offer back in March, hoping to provide it with greater financial flexibility in future financings and boost growth. Cornerstone REIT owns and manages 72 multi-family communities across Virginia, North Carolina, South Carolina, Georgia and Texas.

The REIT announced this week that it has placed $75.5 million in secured financing through First Union Securities Inc. The 10-year loan bears a 6.99% fixed interest rate and is secured by seven of Cornerstone's apartment communities. Cornerstone also has placed $15.68 million in secured financing through ARCS Commercial Mortgage Co. LP.

The 10-year loan bears a 6.83% fixed interest rate and is secured by one Cornerstone property. Company officials say they will obtain the rest of the funding through an increase in its existing unsecured line of credit with First Union National Bank to $100 million from $50 million.

As of Tuesday, 11.8 million series A convertible preferred shares had been tendered in the exchange offer, representing 94% of the affected shares. Of those tendered, holders of 783,311 shares had elected to receive two common shares, while holders of an estimated 11 million shares had elected to receive one common share and $12.25 in cash, according to the company.