ASSOCIATED ESTATES REALTY CORP. SELLS TWO APARTMENT COMMUNITIES
CLEVELAND AND WILLOWICK, OHIO — Richmond Heights, Ohio-based Associated Estates Realty Corp. (AEC) has sold Lakeshore Village apartments located in Cleveland, and Bay Club apartments located in the Cleveland suburb of Willowick. The 108-unit Lakeshore Village was owned by a joint venture in which AEC had a 50 percent interest. The property was the last affordable housing community that the company had an ownership interest in. Bay Club apartments, which was developed by an AEC predecessor company, houses 96 market-rate apartments. The sales price of the property reflects a cap rate of 6.8 percent based on a trailing 12-month NOI, after a 3 percent management fee and $500 per unit of capital expenditures. The acquisition price and the buyer for both deals were not disclosed. AEC’s portfolio includes 52 properties totaling 13,192 units in nine states.