BSR Real Estate Investment Trust of Little Rock announced Wednesday that it has sold five properties, comprising 890 apartment units, for $86 million.
Two of the properties are Windsor Estates I and II in Houston. They were built in 2001 and 2003, respectively. The other properties are The Pointe, built in 2004 in the Beaumont, Texas metropolitan statistical area; South Oaks, built in 1987 in the Little Rock area; and Willow Lake, built in 1977 in the Longview, Texas area.
BSR said it spent $83 million in net proceeds from the sales to repay $40 million in mortgage debt. The balance was used to reduce the outstanding balance on the REIT's credit facility.
BSR sold six properties in the Little Rock and Houston MSAs in November for $130 million in gross proceeds.
"BSR continues to deliver on its strategy in regard to the transformation of the portfolio and confirm values, even amidst the challenges presented by the pandemic," CEO John Bailey said in a news release. "We have now exited the Longview, Texas market and look forward to completing the capital recycling program in our target markets in the short-run, fully funded by our current liquidity position."
The total gross proceeds from the November and December sales represent a 10% increase over the IPO appraised values.
Since BSR completed its IPO in May 2018, the weighted average age of its portfolio has decreased to 17 years from 29 years and 12 acquisitions have added 3,511 apartment units with a weighted average year built of 2011. BSR has also sold 31 properties, totaling 6,039 apartment units, with a weighted average year built of 1986.
The REIT now owns 29 properties, comprising 7,308 apartment units.