$1.9B deal sealed for local REIT

Landmark Apartment Trust of America recently acquired the Landmark at Grand Terraces in Charlotte. (Courtesy of LATA)

Landmark Apartment Trust of America recently acquired the Landmark at Grand Terraces in Charlotte. (Courtesy of LATA)

A local apartments-focused REIT has completed its sale to an out-of-town buyer.

Henrico-based Landmark Apartment Trust, which owns and operates about 24,000 apartments in Virginia and other states, was sold last week for $1.9 billion to Monument Partners, an entity owned by affiliates of Connecticut-based Starwood Capital Group and Milestone Apartments REIT in Texas.

The all-cash deal, which was announced in October, includes assumption of existing debt. As a result of the deal, Monument has directly acquired all of Landmark’s outstanding common stock and indirectly acquired all of the outstanding units of its operating partnership, Landmark Apartment Trust Holdings.

In each case, stock was acquired for $8.17 per share or unit without interest.

Jay Olander

Jay Olander

In a release distributed last Wednesday, Landmark CEO Jay Olander said: “I would like to thank all of our stakeholders – our investors, our lenders and especially all of our associates – for making our company a success.”

In October, Olander said the transaction would result in the closure of Landmark’s local office, located off Dickens and Staples Mill roads. He also hinted at retirement after decades in Richmond’s real estate scene.

Prior to founding Landmark in 2008, Olander was president of the former Cornerstone Realty Income Trust, a publicly traded REIT that was based in Richmond and was founded by Glade Knight, now executive chairman of Apple Hospitality REIT.

The deal gives Starwood Capital, a Greenwich-based global private investment firm, ownership interest in 63 of Landmark’s 78 properties, totaling 19,615 units. Milestone acquires the remaining 15 properties, totaling 4,172 units. The Dallas-based REIT will also manage the Starwood properties.

Landmark’s properties are located in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, Texas and Virginia. While headquartered in Henrico, the company’s closest holding to Richmond is in Portsmouth.

According to its latest annual report, the company’s assets totaled $1.82 billion in 2014. Liabilities totaled $1.53 billion. Total revenues reached $262 million, while expenses totaled $232 million. The company reported a net loss of $66 million, $25 million of which was attributable to common stockholders.

Landmark is considered a non-traded REIT, meaning shares of its stock are sold through brokers but not on public stock markets. With the Monument deal, it is now privately held.

The company had been on track to go public, beefing up its portfolio in 2013 and filing paperwork for an IPO with the SEC last summer. Olander said the drop in the stock market that came in mid-August and interest from potential buyers prompted a change in course.

Landmark Apartment Trust of America recently acquired the Landmark at Grand Terraces in Charlotte. (Courtesy of LATA)

Landmark Apartment Trust of America recently acquired the Landmark at Grand Terraces in Charlotte. (Courtesy of LATA)

A local apartments-focused REIT has completed its sale to an out-of-town buyer.

Henrico-based Landmark Apartment Trust, which owns and operates about 24,000 apartments in Virginia and other states, was sold last week for $1.9 billion to Monument Partners, an entity owned by affiliates of Connecticut-based Starwood Capital Group and Milestone Apartments REIT in Texas.

The all-cash deal, which was announced in October, includes assumption of existing debt. As a result of the deal, Monument has directly acquired all of Landmark’s outstanding common stock and indirectly acquired all of the outstanding units of its operating partnership, Landmark Apartment Trust Holdings.

In each case, stock was acquired for $8.17 per share or unit without interest.

Jay Olander

Jay Olander

In a release distributed last Wednesday, Landmark CEO Jay Olander said: “I would like to thank all of our stakeholders – our investors, our lenders and especially all of our associates – for making our company a success.”

In October, Olander said the transaction would result in the closure of Landmark’s local office, located off Dickens and Staples Mill roads. He also hinted at retirement after decades in Richmond’s real estate scene.

Prior to founding Landmark in 2008, Olander was president of the former Cornerstone Realty Income Trust, a publicly traded REIT that was based in Richmond and was founded by Glade Knight, now executive chairman of Apple Hospitality REIT.

The deal gives Starwood Capital, a Greenwich-based global private investment firm, ownership interest in 63 of Landmark’s 78 properties, totaling 19,615 units. Milestone acquires the remaining 15 properties, totaling 4,172 units. The Dallas-based REIT will also manage the Starwood properties.

Landmark’s properties are located in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, Texas and Virginia. While headquartered in Henrico, the company’s closest holding to Richmond is in Portsmouth.

According to its latest annual report, the company’s assets totaled $1.82 billion in 2014. Liabilities totaled $1.53 billion. Total revenues reached $262 million, while expenses totaled $232 million. The company reported a net loss of $66 million, $25 million of which was attributable to common stockholders.

Landmark is considered a non-traded REIT, meaning shares of its stock are sold through brokers but not on public stock markets. With the Monument deal, it is now privately held.

The company had been on track to go public, beefing up its portfolio in 2013 and filing paperwork for an IPO with the SEC last summer. Olander said the drop in the stock market that came in mid-August and interest from potential buyers prompted a change in course.

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