VA-based Landmark Apartment Trust Pays $64M for Two Charlotte Apartment Buildings

abbington place in charlotteA subsidiary of Richmond, VA-based Landmark Apartment Trust of America, Inc. has acquired 100 percent of the fee simple interest in Ashley Court, a multi-unit apartment community in Charlotte, NC, in exchange for aggregate consideration valued at $30 million.

Another subsidiary of Landmark Apartment Trust of America has acquired 100 percent of the fee simple interest in Abbington Place, also a multi-unit apartment community in Charlotte, NC, in exchange for aggregate consideration valued at $34 million.

The $30 million Ashley Court acquisition consists of $2,761,077 in cash, the incurrence of $24.48 million of mortgage indebtedness and the issuance by the Company of 306,547 shares of its common stock valued at $9.00 per share. The value of the shares was approximately $2,758,923.

The Ashley Court Property is comprised of approximately 326,208 rentable square feet and contains 276 units. As of February 28, 2013, the Ashley Court Property was 95.3% occupied.

The new mortgage indebtedness incurred by the Company in connection with the acquisition of the Ashley Court Property has a variable interest rate of 3.00 percent over the 30-day LIBOR, which has been capped at 5.25 percent by an interest rate swap agreement. The loan was issued by Wells Fargo Bank and is secured by a first mortgage on the property.

The loan matures on March 1, 2015 subject to a six month extension option upon satisfying certain conditions.

The $34 million Abbington Court acquisition consists of $2,115,020 paid in cash, the assumption by the Company of approximately $25,539,890 of mortgage indebtedness and the issuance by the Company of 705,010 shares of common stock valued at $9.00 per share. This represented an aggregate consideration of approximately $6,345,090.

The Abbington Place Property is comprised of approximately 351,480 rentable square feet and contains 279 units. As of February 28, 2013, the Abbington Place Property was 93.1% occupied.

The mortgage indebtedness assumed in connection with the acquisition of the Abbington Place Property has a fixed interest rate of 4.29% and is issued by Fannie Mae and serviced by Wells Fargo Bank. The loan is secured by a first mortgage on the property and matures on May 1, 2022.

The Company currently has no plans for any renovations, improvements or development of the properties.