Mid-America has owned the three-building property since 1998. The company is using the sale proceeds to pay down undisclosed debt, the REIT says in a prepared statement. The company expects to record a net gain of $5.8 million on the transaction but will also incur lender costs and deferred financing write-offs of $44,000 attributable to the sale. This item will be charged to FFO in the fourth quarter.
Mid-America also confirmed its prior estimates of the impact on FFO from recent hurricanes and storms made before Hurricane Jeanne on Sept. 4. The company expects the impact on FFO of all the storms to be in the upper end of the range, or about two cents per share, mostly falling in the third quarter.
Mid-America has only 30 apartments out of service from 7,269 units the company owns in Florida. The REIT expects the 30 apartments to be back in service by Nov. 1. Mid-American owns a total 37,224 units throughout the Southeast and South-Central US and in Texas.
Rents at the three Island Retreat segments are $669 to $769 per month for a one-bedroom, one-bath unit at the Islander section; $759 to $859 for a two-bedroom, two-bath unit at the Retreat; and $849 to $949 for a three-bedroom, two-bath unit at the St. Simons.
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