Apartment Trust of America Gets $537M Recap, New Name

The recapitalization included the investors' contribution of a 21-property portfolio encompassing 6,100 apartment units valued at $485 million. For its part, ATA handed over $187 million of partnership interests in its operation partnership.

Apartment Trust of America Inc. just got a big shot in the arm. The REIT has been recapitalized to the tune of $536.5 million in a multi-faceted transaction involving Elco Landmark Residential Holdings L.L.C., along with DeBartolo Development L.L.C, the Florida Value Funds and additional investors.

The recapitalization included the investors’ contribution of a 21-property portfolio encompassing 6,100 apartment units valued at $485 million. For its part, ATA handed over $187 million of partnership interests in its operation partnership. The agreement also included $16 million in cash and the assumption of portfolio debt totaling $282 million.

“The goal of the company is to list its shares on an exchange to provide liquidity for our stockholders,” Stanley J. Olander, CEO of ATA, told CPE. “This transaction is a major step toward reaching that goal.” ATA relied on Bank of America Merrill Lynch to serve as exclusive advisor and Elco Landmark was advised by Evercore Partners.

When all is said and done, ATA, which has developed a collection of premier multi-family assets over the last six years, will have a diverse portfolio of 36 properties totaling 10,000 residences, leaving the company with a reach spanning 17 growing markets across the southern U.S.

In addition to the half-billion-dollar recapitalization, ATA also has a new name. The multi-family REIT has taken on the new name of Landmark Apartment Trust of America. ATA also ended its agreement with external advisors ROC REIT Advisors L.L.C.