BOCA RATON, FL-Gables Residential’s initial 2005 outlook calls for the sale of $400 million in assets and the acquisition of approximately $250 million in assets in the coming year. More than a quarter, or $125 million of assets to be sold, will occur in January.

In all, Gables projects economic gains of between $30 million and $35 million from the sale of real estate in 2005. About $100 million of the anticipated 2005 acquisitions were originally expected to close in 2004. Part of the investment strategy involves recycling capital through dispositions of non-core, slower growth assets and the acquisition of assets with better growth potential.

The forecast statement says, “The competitive acquisition environment, including competition from condominium converters, is likely to result in a timing difference between the closing of dispositions and the closing of acquisitions. In addition, continued pressure of initial investment yields from increasing asset prices is likely to cause more short-term earnings dilution than previously anticipated.”

The locally based developer, owner and manager of multifamily facilities currently has $301 million in properties under construction. They include Gables Marbella here and Gables Montecito in Palm Beach Gardens. Marbella lease-up will begin in fourth quarter 2005 and lease-up of Montecito is expected to begin in first quarter 2006. Beyond current construction, Gables has land valued at approximately $400 million in its development pipeline, primarily in Texas.

Occupancy at same-store communities, which is those that had been in operation for at least a full year, underperformed during the first half of 2004, prompting Gables to lower asking rents in the year’s third quarter. During the first nine months of 2005, the company expects year-over-year occupancy to increase between 1% and 2%. The modest improvement is based on job growth projections and reductions in new supply.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.