Both of the complexes are more than 18 years old and outside zones that Gables considers "established premium neighborhoods," (EPN). Chris Wheeler, chairman and CEO, says, "We continue to execute our strategic plan by recycling capital from suburban assets into our targeted EPN locations and reducing our exposure to variable-rate debt." Gables defines EPNs as "areas with high per-sf prices for single-family homes."

The buyer, which Gables declined to identify, assumed $41.5 million of tax-exempt, variable-rate debt as a part of the acquisition. Gables anticipates recording a gain, net of associated costs, of approximately $17.6 million during this quarter. The economic gain from the transaction is expected to be $6.7 million, which is equal to the gain before the impact of accumulated depreciation and represents the net cash proceeds from the sale, less the cash Gables invested in the sold assets.

The occupancy rate at the properties is undisclosed. Published rental rates for Mahogany Bay range from $740 a month for a one-bedroom, one-bath unit to $905 a month for a two-bedroom, two-bath unit.

Gables currently manages 43,715 apartment units in 169 properties, including the 85 communities with an aggregate of 21,961 units that it owns. The properties are primarily in Atlanta, Houston, South Florida, Austin, TX, Dallas; Washington, DC and San Diego. It currently has an additional seven properties with a total of 1,835 units under development or lease-up.