AUSTIN, TX – Independence Realty Trust announced that it sold a 320-unit apartment property located in Austin, Texas for $32.0 million. IRT received net cash proceeds of $23.7 million after transaction costs and full repayment of $7.0 million of underlying property specific debt.
IRT expects to recognize a gain of approximately $16.2 million associated with this sale, after transaction costs, in the quarter ended June 30, 2017.
IRT used $21.0 million dollars of the proceeds from this sale to reduce its outstanding borrowings on its line of credit.
The property sale is part of IRT’s previously announced strategy to sell its “C” class assets and reinvest the proceeds into “B” class assets located in IRT’s core geographic markets. This is the first of four sales, all expected to close during the second quarter.
Independence Realty Trust is an internally-managed real estate investment trust that seeks to own well-located apartment properties in geographic submarkets that it believes support strong occupancy and the potential for growth in rental rates. IRT seeks to provide stockholders with attractive risk-adjusted returns, with an emphasis on distributions and capital appreciation.