Canadian REIT sells three noncore properties in Texas
BSR REIT has sold three noncore properties, comprising 632 apartment units, as part of the REIT's portfolio enhancement and capital recycling strategy.
The following properties were sold in Longview, Texas for gross proceeds of $52.5 million: Summer Brook Apartments built in 1997; Summer Green I Apartments; and the second phase, Summer Green II, both built in 1984.
“The sale of the Longview properties is consistent with our stated strategy to capitalize on the historically low cap rate spread between primary and secondary markets in U.S. sunbelt states,” said John Bailey, CEO of BSR. “These sales follow the March acquisition of Ariza in our target market of Austin, Texas, and enable us to enhance the quality of our portfolio in primary markets, while also crystalizing the benefits of upgrades previously performed on the Longview properties on a tax-deferred basis.”