BSR Real Estate Investment Trust of Little Rock announced Tuesday that it has sold Towne Park at Har-Ber Apartments in Springdale for $31.7 million, 9.7% more than what the REIT paid for the complex in October 2018.
In lieu of BSR incurring penalties for the early repayment of debt, the purchaser assumed $18.8 million of mortgage debt with a 4.5% fixed interest rate, maturing in 10 years. Net cash proceeds to the REIT totaled $12.3 million.
"Towne Park is a community that has benefited from the BSR management platform, recently making the J Turner Research’s Elite 1% list in online reputation," CEO John Bailey said in a news release.
"While we only owned the property for a little over two years, reversion values in the northwest Arkansas market are very attractive at this time," he said. "Given the REIT does not have scale in this market, it makes sense to capitalize on the current market conditions. Once again, we have crystalized value created by our platform, and we will continue this process going forward as we reinvest the proceeds in high growth markets to exploit the scalability of the platform."
The REIT owns 7,391 apartment units in 29 real estate investment properties.
