NEW YORK — Post Properties Inc. (NYSE: PPS) has closed the sale of its Post Luminaria and Post Toscana apartment communities in New York City for a total price of $270 million.
Post Luminaria was completed in 2002. The property consists of 138 apartment units and approximately 9,400 square feet of retail space. The property was owned in a consolidated joint venture in which Post held a 68 percent interest.
Post Toscana was completed in 2003. The property includes 199 apartment units and approximately 11,700 square feet of retail space.
The name of the buyer was not released. Eastdil Secured acted as broker in the transaction. A portion of the net proceeds from the sales was used to prepay $82.6 million of secured mortgage indebtedness encumbering the assets and related prepayment premiums totaling $13 million. After expenses, Post expects to retain $141 million of net cash proceeds from the sales.
In the third quarter of this year, Post expects to report a net gain on the sale of the assets of approximately $127 million, or $2.33 per share, and a loss on the early extinguishment of debt of $12.3 million, or $0.23 per share. The loss related to debt prepayment premiums paid and the write-off of unamortized deferred financing costs, each net of non-controlling interests in the Post Luminaria joint venture.
Post is a developer and operator of upscale multifamily communities founded more than 40 years ago. The company operates as a REIT focused on developing and managing Post branded apartments. Post Properties is headquartered in Atlanta and has operations in nine markets across the country. The company has interest in 22,259 apartment units in 58 communities.
Post’s current stock price is $51.22 per share, up from $44.85 a year ago.
— Haisten Willis