Little Rock-based BSR Real Estate Investment Trust announced Thursday (Dec. 9) it sold West End Lodge located in Beaumont, Texas, built in 2010 and comprising of 360 apartment units, for gross proceeds of $44 million.
BSR REIT has now exited the Beaumont, Texas market as part of its portfolio enhancement growth strategy and capital recycling program.
As part of the transaction, the buyer assumed the REIT’s in-place mortgage financing of $21.9 million and the REIT took back a $5.2 million note receivable maturing in five years. The note bears interest at 4.1% in years one and two, 5.1% in years three and four, and 10.0% in year five. The REIT intends to use the remaining cash proceeds of $21.5 million to fund acquisitions.
The transaction marks the 12th disposition for BSR in the fourth quarter of 2020.
Following the progress of BSR’s capital recycling program completed to date, the REIT’s portfolio has 6,948 apartment units in 28 real estate investment properties.
“BSR has now exited the Longview and Beaumont, Texas markets, the Baton Rouge and Shreveport, Louisiana markets and the Tulsa, Oklahoma market, in addition to other non-core asset dispositions in the Little Rock, Arkansas and Houston, Texas markets,” said John Bailey, BSR’s Chief Executive Officer.
“We now turn to completing this current phase of the capital recycling program by making acquisitions in our target markets, fully funded by our current liquidity position. We have a robust pipeline of acquisition opportunities and expect to deploy our available capital over the short-run,” Bailey added.