Post Sells Atlanta Apartment Property, Refinances Others
- Aug 21, 2008
It’s only Wednesday and already it’s been a big week for upscale multi-family developer Post Properties of Atlanta. The REIT has sold its 250-unit Post Oglethorpe apartment community in Atlanta’s Brookhaven area for $38.5 million and has refinanced two apartment complexes held in joint ventures. In addition, two of the big three credit rating agencies recently had some news for the company. In June, citing difficult market conditions, Post had announced that it was ending its five-month effort to be acquired, having received some inquiries but no definitive proposals. One of the options for enhancing the shareholder value that the company described at the time was asset sales. The garden-style Post Oglethorpe community was built in 1994 and consists of units averaging about 1,150 square feet. Post anticipates reporting a gain of about $23 million on the sale, according to a prepared statement. The buyer was not disclosed. The refinance involves two five-year, fixed-rate, interest-only mortgage loans with Fannie Mae, for the Post Biltmore community in Atlanta and the Post Massachusetts Avenue community in Washington, D.C., each of which is held in an unconsolidated joint venture in which Post holds a 35 percent interest. The Post Biltmore mortgage loan has a principal amount of about $29.3 million and a rate of 5.83 percent, and the Post Massachusetts Avenue mortgage loan has a principal amount of about $50.5 million and a rate of 5.82 percent. Finally, Post also announced that Moody’s Investors Service and Standard & Poor’s last week had affirmed its senior unsecured credit ratings of Baa3 and BBB, respectively. Moody’s also revised the rating outlook to stable from developing for Post Properties Inc. and Post Apartment Homes L.P., and S&P removed the company from Credit Watch while changing its outlook to negative. These rating affirmations and outlook changes followed Post’s announcement regarding its unsuccessful attempt to be acquired. Founded more than 35 years ago, Post Properties is a major developer and operator of upscale multi-family communities and also develops high-end residential condominiums and converts existing apartments to for-sale units. The company owns nearly 22,000 apartment units in 60 communities, including units held in unconsolidated entities and units in communities currently under construction or in lease-up.