BRT Apartments Corp. To Sell Multifamily Assets for $226M
The firm has agreed to sell a 586-unit property and a 522-unit property, owned with a joint-venture partner.
GREAT NECK, NY – BRT Apartments Corp. has entered into agreements to sell two multifamily properties for $226 million. The two properties are owned by an unconsolidated joint-venture, in which BRT Apartments Corp. has a 50% interest.
BRT Apartments Corp. expects to recognize its share of the gain, net of any prepayment penalty, between $28 million and $30 million from the property sales.
The properties comprise the $118.3 million 586-unit property, Parc at 980, in Lawrenceville, GA and the $108.0 million 522-unit property, The Avenue Apartments, in Ocoee, FL.
The aggregate debt on the properties is $107.5 million, which will be repaid or assumed by the buyers. BRT Apartments Corp.’s net proceeds after the repayment of debt, the mortgage prepayment charge and closing costs are estimated to total $46 million.
The transactions are expected to close by the end of Q3 2021.
“The market for Southeast multifamily assets remains very competitive and we are pleased to execute on these sales to further BRT’s focus on maximizing returns for stockholders and reducing our overall debt structure,” states Jeffrey A. Gould, CEO and president of BRT Apartments Corp. “We anticipate that proceeds from these sales will be used to retire debt and be re-deployed into the previously announced acquisition of our joint-venture partners’ interests in Bells Bluff, located in West Nashville, TN. We are excited about the Bells Bluff acquisition and will continue to look for acquisitions that meet our underwriting criteria.”
Gould adds, “We are navigating a challenging acquisition market; however, we remain focused on our unique ability to buy out our joint venture partners and pursuing accretive acquisitions as we create value for our stockholders.”