BSR Real Estate Investment Trust of Little Rock announced this week that it has sold four "non-core" assets for $31.7 million as part of a "portfolio enhancement" and "capital recycling" strategy.
The $31.7 million exceeded the initial public offering appraised values by $1.3 million, or 4.3%, according to a news release.
The transactions include the 280-unit Briarwood Apartments in Little Rock; the 245-unit Spring Valley Apartments, also in Little Rock; the 144-unit Fox Trail Apartments in Shreveport, Louisiana; and the 104-unit South Pointe Apartments, also in Shreveport.
"We have consistently said our plan is to recycle capital into core markets, by selling properties that no longer meet our long-term growth strategy," CEO John Bailey said in the release.
"Through these property sales, we have crystallized the benefits of the upgrades previously performed, allowing us to redeploy the capital to other properties where we can maximize our platform's capabilities and capital redevelopment program, thereby, increasing unitholder value," he continued. "We have acquired four properties since going public in May 2018. These purchases are aligned with our acquisition strategy, as the properties were built after 1990, clustered in target markets and were purchased with a clear potential for higher rent utilizing the BSR platform."
Of the $39.6 million in net cash proceeds from these sales, $19.4 million was used to retire related mortgage financing and $11.2 million was used to reduce the balance outstanding under BSR’s credit facility.
The firm's portfolio now consists of 47 multifamily properties.