(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)

RICHMOND-Apartment Trust of America is recapitalizing its operations and making eventual plans to list shares on a public stock exchange. The recapitalization included the contribution of a 6,100-unit portfolio of 21 apartment communities, valued at $485 million in exchange for $187 million worth of partnership interests, $16 million in cash and the assumption of $282 million in debt on the properties.

The properties are being contributed by Elco Landmark Residential Holdings LLC and its affiliates and partners, DeBartolo Development LLC, the Florida Value Funds and other investors. The now-expanded company has been renamed Landmark Apartment Trust of America. Joseph Lubeck, CEO of ELRH, will become the executive chairman of ATA's Board of Directors and Stanley J. Olander will continue to serve on the Board and in his role as CEO of the company. Gus Remppies will continue as president of the company.

“We're bringing new capital into the company and new property with equity,” Olander tells GlobeSt.com. ATA looked at a number of different alternatives to provide liquidity to its shareholders and decided listing its shares was the best route, he says. “Rents are rising and macroeconomic fundamentals are good. Liquidating the company wouldn't have delivered the liquidity our shareholders were owed.”

Currently the company’s status has been as a public, non-listed  firm. It doesn’t have a specific date in mind for listing; Olander says the now-expanded company wants to get a few quarters of earnings behind it before it goes to market. When the recap is complete, ATA will own a total of 36 properties, containing approximately 10,000 units, in 17 markets across the southern United States. It will continue to provide fee-management services for approximately 12,000 units it does not own.

The company established two classes of cumulative redeemable preferred stock, and sold $50 million of the preferred stock to OPSEU Pension Trust and DeBartolo together with warrants to purchase an equivalent amount of ATA common stock. The warrants will become exercisable at a price per share of not less than $9 upon redemption of the preferred stock.

ATA also sold for cash approximately $1.5 million of common stock to ELRH at a price of $8.15 per share. Proceeds are being used to repay debt, fund additional property acquisitions and pay transaction costs.