NEW YORK CITY—Atlanta-based Post Properties Inc. reports it has closed on the sale of its Post Luminaria and Post Toscana apartment communities here for a gross sale price of $270 million.
Post Luminaria at 385 First Ave., was completed in 2002, and contains 138 apartment units and approximately 9,400 square feet of retail space. Post Luminaria was owned in a consolidated joint venture in which the company held a 68% interest. The Post Toscana development at 389 East 89th St. was completed in 2003 and contains 199 apartment units and approximately 11,700 square feet of retail space.
The buyer was not disclosed. Eastdil Secured served as broker on the transaction. Post Properties has interests in 22,259 apartment units in 58 communities, including 1,471 apartment units in four communities held in unconsolidated entities and 1,201 apartment units in four communities currently under development or in lease-up.
A portion of the net proceeds from the sales of the two New York City properties were used to prepay approximately $82.6 million of secured mortgage indebtedness encumbering the assets and related prepayment premiums totaling approximately $13 million, the company states. After closing costs and expenses, debt prepayments and distributions of the company's share of the net proceeds received from the sale of Post Luminaria, Post expects to retain approximately $141 million of net cash proceeds from the sales of the two communities.
In the third quarter of 2014, Post Properties expects to report a net gain on the sale of these assets of approximately $127 million, or approximately $2.33 per diluted share, and a loss on the early extinguishment of debt of approximately $12.3 million, or approximately $0.23 per diluted share.
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