BSR REIT to sell five more properties for $86 million
BSR Real Estate Investment Trust announced Wednesday (Dec. 2) that it has sold five “noncore properties,” comprising 890 apartment units, as part of the REIT’s portfolio enhancement growth strategy and capital recycling program. The REIT received total gross proceeds of $86 million.
Two of the five assets sold, Windsor Estates I and II, which were built in 2001 and 2003, respectively, are in the Houston, Texas metropolitan statistical area (MSA). Other assets sold were The Pointe, built in 2004 in the Beaumont, Texas MSA; South Oaks, built in 1987 in the Little Rock, Arkansas MSA; and Willow Lake, built in 1977 in the Longview, Texas MSA.
The net proceeds of $83 million generated from these sales were used to repay $40 million in mortgage debt, with the balance used to reduce the outstanding balance on the REIT’s credit facility.
BSR REIT sold six other properties last month for roughly $130 million.
“BSR continues to deliver on its strategy in regard to the transformation of the portfolio and confirm values, even amidst the challenges presented by the pandemic,” said John Bailey, BSR’s CEO. “We have now exited the Longview, Texas market and look forward to completing the capital recycling program in our target markets in the short-run, fully funded by our current liquidity position.”