Key facts
- Elme Communities has a new agreement to sell Riverside Apartments in Alexandria, Virginia, for $250 million.
- The sale to FPA Multifamily LLC is expected to close by September 14.
- This deal is critical for Elme to repay a $520 million term loan from Goldman Sachs.
- Elme previously announced plans to liquidate in August of the prior year.
- A prior deal to sell Riverside Apartments for $280 million collapsed in June.
- Elme has updated its shareholder payout estimate to a range of $16.41 to $16.61 per common share.
Elme Communities is moving forward with its liquidation plan after securing a new buyer for its Riverside Apartments complex in Alexandria, Virginia. FPA Multifamily LLC has agreed to purchase the 1,222-unit property and adjacent land for $250 million.
This new agreement comes after a previous deal with Beitel Group for $280 million fell through in June. The current contract is subject to inspection and closing conditions, with an expected completion date no later than September 14. The proceeds from this sale are crucial for Elme to fully repay a $520 million term loan from Goldman Sachs, a key step in its liquidation strategy.
Elme, formerly known as WashREIT, began its liquidation process last August, having already sold 19 properties to Cortland in November. The REIT has since sold six additional properties for approximately $294 million and has three more under contract, expected to yield $168 million. As of July 23, the outstanding balance on its term loan was $251 million.
Following the collapse of the prior deal, Elme had to revise its shareholder payout estimates. The latest update places the expected payout between $16.41 and $16.61 per common share, a reduction from earlier projections. Elme plans to distribute net proceeds to shareholders at its Board's discretion.