KBS Legacy Partners Apartment REIT Cuts Deal to Sell First Four of its Remaining 10 Properties
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| Crystal Park at Waterford in Frederick, MD, is one of four properties being sold to Elite Capital. |
KBS Legacy Partners Apartment REIT has decided it’s time to cash out on its remaining assets purchased through early 2014.
The Newport Beach-based non-traded REIT plans to sell its 10 remaining apartment properties and has already cut separate agreements to sell four of them. The plan must first be approved by its stockholders.
At the start of this month, the REIT agreed to sell four of its properties to funds affiliated with Houston-based Elite Street Capital.
Elite agreed to pay $218.9 million for the properties containing 1,273 units, representing a price of $171,956/unit. The sale of the portfolio is also contingent on stockholder approval of the plan of liquidation.
The properties to be sold as part of the Elite trade are Legacy at Valley Ranch, 504 units in Irving for $68.5 million purchase price; The Residence at Waterstone, a 255-unit complex in Pikesville, MD, for $60.1 million; Crystal Park at Waterford, a 314-unit complex in Frederick, MDselling for $45.9 million; and Lofts at the Highlands, a 200-unit complec in St. Louis selling for $44.4 million.
KBS Legacy Partners Apartment REIT noted that there are no restrictions on it to negotiate with other potential buyers and attempt to sell the properties for a higher price.
The REIT also owns other apartment holdings in the Charlotte, Chicago, Minneapolis and Greenville, SC, markets.
The REIT’s sponsor, KBS Realty Advisors, may not be done looking to reshape its post-recession era purchases. According to multiple news reports, KBS Realty Advisors is said to be in talks with the asset-management arm of Singapore-based Keppel Corp. to form a joint venture for listing as a REIT later this year on the Singapore stock exchange.
It was being reported that the new company would have an initial portfolio of close to a dozen properties, including office buildings in Seattle, Houston, Denver and other US cities.
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