Landmark Apartment Trust Acquires Full Interest in FL Multifamily Properties for $30.8M

Landmark at Woodland Trace in Cassleberry, FL

Landmark Apartment Trust of America, Inc. has acquired two multifamily apartment properties in Florida for an aggregate purchase price of $58.8 million.

This includes the assumption of mortgage indebtedness in the aggregate amount of about $30.8 million and the issuance of 3,548,002 common limited partnership units in the company’s operating partnership.

The contributor of both properties was Elco LR OPT I REIT LP, which is affiliated with Messrs. Joseph G. Lubeck and Michael Salkind, two of the Company’s directors.

The company acquired 100% of the partnership interests in Landmark at Woodland Trace LP, which owns as its sole asset the multifamily residential apartment project in Cassleberry, FL known as Landmark at Woodland Trace Apartments. The asset was acquired in exchange for consideration consisting of:

(i) 1,513,110 common limited partnership units in the Operating Partnership valued at $8.15 per unit (subject to prorations and adjustments), and
(ii) existing mortgage indebtedness remaining in place with an outstanding principal balance of approximately $14,819,508.

The Woodland Trace Property is comprised of approximately 326,856 rentable square feet containing 384 units. As of October 3, 2013, the Woodland Trace Property was 92% occupied.

The existing mortgage remaining in place after the acquisition of the Woodland Trace Property had an outstanding balance as of closing of approximately $14,819,508 held in a CMBS pool sub-serviced by Berkadia Commercial Mortgage LLC. Interest accrues on the loan at a fixed rate equal to 4.28% and the loan matures in November 2018.

The company also acquired 100% of the partnership interests in Landmark at Grayson Park LP, which owns as its sole asset a multifamily residential apartment project in Tampa, FL known as Landmark at Grayson Park Apartments (the “Grayson Park Property”), in exchange for consideration consisting of:

Landmark at Grayson Park in Tampa

(i) 2,034,892 common limited partnership units in the Operating Partnership valued at $8.15 per unit (subject to prorations and adjustments), and
(ii) existing mortgage indebtedness remaining in place with an outstanding principal balance of approximately $15,939,865.

The Grayson Park Property is an apartment community located in Tampa, Florida, comprised of approximately 334,584 rentable square feet containing 408 units. As of October 3, 2013, the Grayson Park Property was 95% occupied.

The existing mortgage remaining in place after the acquisition of the Grayson Park Property had an outstanding balance as of closing of approximately $15,939,865 held in a CMBS pool serviced by Berkadia Commercial Mortgage LLC. Interest accrues on the loan at a fixed rate equal to 4.91% and the loan matures in April 2015.