Colonial Properties Sells M-F Asset for $58M

Colonial Properties Trust has announced that it has completed the sale of Colonial Grand at Hunter’s Creek, a 496-unit apartment community located in Orlando, Fla. The asset went for $57.7 million in net proceeds, which represents a capitalization rate of 6.3 percent. The 11-year-old apartment community was unencumbered. The company has now completed a total of $198.3 million in dispositions to date in 2008. Consistent with the trust’s stated objectives for 2008, it will use the proceeds to continue reducing its leverage. Colonial recently made news in Alabama. Earlier this month it proposed expanding its new Colonial Promenade Tannehill shopping center, and sought from the Bessemer City Council help to pay for it, according to The Birmingham News. The REIT proposed paying for the capital costs, but wanted to split the sales tax revenue from the expansion for at least 8 years, so Colonial could pay itself back. The REIT wants to begin construction by the end of 2008.Colonial Properties is a multi-family REIT that, as of June, owned or managed 37,112 apartment units, 16.3 million square feet of office space and 8.1 million square feet of retail shopping space located in key Sunbelt states from Virginia to Nevada.