New York-based REIT BRT Apartment Corp. has divested from The Veranda at Shavano, a 288-unit multifamily property in San Antonio. The sales price was $53.8 million.
The REIT has a 65% equity interest in the property, which it owned as part of a joint venture. The reported gain on the property will be $23.7 million with BRT expecting its share of the gain to be $12.7 million. The company owned the community for five and a half years.
In 2021, the property generated $526,000 of equity in earnings from unconsolidated joint ventures, after giving effect to $715,000 of depreciation, $629,000 of interest expense and a $616,000 gain from insurance proceeds.
“We continue to generate strong returns while producing significant economic gains through the targeted sale of properties that we believe have reached their maximum value in our portfolio,” said Jeffrey Gould, CEO and President at BRT. “Our mortgage debt paydown continues the process of deleveraging our portfolio over time. We anticipate reinvesting the proceeds of the property sale in our ongoing efforts to buy-out select joint venture partners to further consolidate our operations while building long-term value for stockholders.”
David Cohen is Southeast Editorial Director at Connect Commercial Real Estate. David is a media veteran with more than 10 years of experience in journalism, copywriting and communications across a variety of roles. He is responsible for covering commercial real estate news and trends in the Southeast, Florida, Washington D.C. and Boston at Connect CRE as well as specializing in the Student Housing sector.
Prior to joining Connect, David was the editor of Northeast Real Estate Business magazine and Student Housing Business magazine at France Media as well as spending time freelancing for ESPN and the Associated Press in the fast-paced field of live sports event production. He is also an owner and investor in multifamily real estate in Atlanta, GA.
David currently resides in Atlanta and graduated from the College of Communication & Information at the University of Tennessee Knoxville.
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