DURHAM, NC – Independence Realty Trust announced it has completed three transactions in June 2017, aggregating $70.6 million, related to its ongoing capital recycling strategy.
IRT completed the acquisition of a 328-unit apartment community located in Durham, North Carolina for $42.95 million. Constructed in 2002, the community is located in the South Durham submarket; the fourth-fastest growing submarket by rent growth in the Raleigh-Durham MSA. As of May 31, 2017, the community was 95.2% occupied and for the three months ended May, 2017, had an average effective rent per occupied unit of $1,039.
IRT used net proceeds from recent dispositions and its line of credit to acquire the community. IRT previously managed this property on behalf of RAIT Financial Trust.
During June 2017, IRT sold two class C communities, a 200-unit community in Newport News, Virginia on June 1 and a 354-unit community in Indianapolis, Indiana on June 9, for a combined sale price of $27.6 million. IRT expects to recognize a gain of approximately $7.8 million associated with the sales in the quarter ending June 30, 2017. Both communities were classified as held for sale.
“These transactions underline our commitment to strengthening our portfolio composition by investing in well-located, middle-market communities in attractive non-gateway markets,” said Scott Schaeffer, Chairman and CEO of IRT. “This acquisition is a perfect fit with our investment thesis as it increases our scale in the Raleigh-Durham market, which continues to benefit from its proximity to prestigious universities, a thriving workforce, and world-class employers. The disposition of the two legacy class C communities is a key milestone in the efficient execution of our capital recycling strategy initiatives.”
Independence Realty Trust is a real estate investment trust that owns and operates 47 multifamily apartment properties, totaling 13,198 units, across non-gateway U.S. markets, including Louisville, Memphis, Atlanta and Raleigh. IRT’s investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and key employment centers.