Barbara E. Hasenstab, vice president of investor relations for Associated Estates, declined to disclose the selling price, but says the locally based multifamily REIT realized net proceeds of $41.3 million and the prices reflect a blended cap rate of 5%. The company will use the proceeds to pay down debt.
The properties, totaling 1,100 units, are Winchester Hills at 27400 Chardon Road in Willoughby Hills and Portage Towers at 2220 High St. in Cuyahoga Falls. Both were completed in the 1970s. Marcus & Millichap represented Associated Estates in the transactions.
Winchester Hills is 92.7% occupied, Hasenstab says. It rents range from $540 to $953 per month. Hasenstab tells GlobeSt.com that Portage Towers is 95.5% occupied. Its rents go from $499 to $650 a month.
During a first-quarter conference call, John T. Shannon, the REIT's vice president of operations, said the company intends to sell at least $75 million in assets this year. The company currently owns, manages or joint ventures on 107 multifamily assets with 22,213 units in 11 states.
"These sales are consistent with our objective to reduce the number of older, non-core apartment communities we own in the Midwest," Jeffrey I. Friedman, president and CEO for the REIT, says in a press release.
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