The Alabama-based REIT says it is using the sale proceeds to pay off mortgage debt of $69.8 million at a blended interest rate of 5.97% and also to reduce its unsecured line of credit. In a prepared statement, Paul Earle, Colonial's executive vice president of multifamily properties, didn't disclose the names of the individual buyers but says the properties average 10 years of age and were about 94% occupied.
"This sale contributes to the company's stated objectives of reducing secured debt and recycling assets which have reached their maximum potential inside our portfolio," Earle says. "We continue to execute our strategy of exiting markets with lower growth potential and repositioning our portfolio into high growth, demographically attractive Sunbelt markets."
Earle says Colonial Properties has a total market capitalization of about $5 billion. The company manages or leases 50,000 apartment units, 6.8 million sf of office space and 15.1 million sf of retail shopping space.
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