BRT Apartments Corp. Sells 288-Unit Multifamily
The San Antonio, TX property sold for $53.8 million and the company expects to gain more than $12 million from the sale.
SAN ANTONIO, TX – Great Neck, NY-based REIT, BRT Apartments Corp. has sold the 288-unit multifamily property, The Veranda at Shavano, in San Antonio, TX for $53.8 million.
The company had a 65% equity interest in the property, which it owned in an unconsolidated joint-venture.
The gain on the sale of the property will be $23.7 million. BRT Apartments Corp. expects its share of the gain to be $12.7 million, which will be recognized in Q1 2022. The company owned the property for five and a half years, during which it produced an 18.8% IRR.
During 2021, the property generated $526,000 of equity in earnings from unconsolidated joint-ventures, after giving effect to $715,000 of depreciation, $629,000 of interest expense and a $616,000 gain from insurance proceeds.
The property was secured by $25.1 million of mortgage debt, which was repaid in connection with the sale.
“We continue to generate strong returns while producing significant economic gains through the targeted sale of properties that we believe have reached their maximum value in our portfolio,” says Jeffrey A. Gould, CEO and president of BRT Apartments Corp.
Gould adds, “Our mortgage debt paydown continues the process of deleveraging our portfolio over time. We anticipate reinvesting the proceeds of the property sale in our ongoing efforts to buy-out select joint-venture partners to further consolidate our operations while building long-term value for stockholders.”
BRT Apartments Corp. additionally used its available cash to pay-off $14.5 million of 4.3% mortgage debt of Avalon Apartments in Pensacola, FL., which was scheduled to mature in March 2022.