Post Properties Sells Two Apartment Communities for $102M to Repay Credit Line and Bulk Up Cash Balances
(ATLANTA, GA) -- Cash is king in today's tight credit markets, a fact of which 38-year-old apartment community developer Post Properties Inc. is fully aware.
The Atlanta-based company has closed sales on two garden-style properties totaling $102.3 million.. The proceeds will be used to repay the company's line of credit and to strengthen its cash reserves, says president and CEO David P. Stockert.
"Completing these two sales in a difficult transaction environment reflects the quality of the assets and the strength of the Post® brand," says Stockert.
"Net proceeds will be used to bolster our balance sheet and our cash balances, enhancing the Company's financial strength and flexibility through the current economic cycle."
The sold properties were the 434-unit, 11-year-old Post Ridge community in Atlanta and the 364-unit Post Forest community in Fairfax, VA.
An entity affiliated with Centennial Holding Company, LLC of Atlanta purchased Post Ridge for $44.8 million or about $103,226 per unit.
An entity affiliated with Pantzer Properties, Inc. of New York, NY. paid $57.5 million or about $157,867 per unit for Post Forest.
CB Richard Ellis, Inc. brokered the Post Ridge transaction. Holliday Fenoglio Fowler LP handled the Post Forest sale.
The Company expects to report net gains of approximately $54 million in the third quarter relating to these two sales.
Post Properties owns 19,864 apartment units in 55 communities, including 1,747 apartment units in five communities held in unconsolidated entities and 1,736 apartment units in five communities currently under construction and/or in lease-up.
The Company is also developing and selling 362 for-sale condominium homes in three communities (including 129 units in one community held in an unconsolidated entity) and is converting apartment units in two communities initially consisting of 349 units into for-sale condominium homes through a taxable REIT subsidiary.