An IPO-hungry local REIT has some big buys in the pipeline.
West End-based Landmark Apartment Trust of America is under contract to acquire 10 apartment developments for almost $262 million, according to a filing with the Securities and Exchange Commission.
The properties are suburban apartment complexes with 3,422 total units in North Carolina, Tennessee and Texas.
They are the latest in a line of deals the firm is working to boost its holdings ahead of a planned public offering.
“With the combination of what we have under contract and what we just closed, it’s a pretty good growth spurt for us once again,” said Jay Olander, Landmark Apartment Trust’s founder and chief executive, in a phone interview Wednesday.
Not including its pending deals, LATA owns more than 11,000 apartment units and manages 15,000. It has more than doubled its property holdings since last year and has brought in hundreds of millions of dollars in fresh capital and credit to keep the deals flowing.
It has closed more than $500 million worth of apartment acquisitions and property management contracts.
“We are looking at a number of acquisitions, which are consistent with our goal of bringing the company to a total of $2 billion market capitalization over the next year,” Olander said.
That $2 billion company value is the mark the firm has targeted to make it more attractive for going public.
“We are on the path to do a public listing of the shares,” Olander said. “The markets have been good for the type of offering we’re looking at, and we’re targeting to get this thing done in late fall or early next year.”
Olander said the acquisitions of these latest 10 properties are expected to close in the next 60 days.