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Home Properties sells pair of properties for $109.1M

Rochester Business Journal
April 9, 2013

Home Properties Inc. has sold two of its properties, with a combined total of 511 units, for $109.1 million, the company said Tuesday.

Falkland Chase, a property containing 450 apartment units, was sold for $98 million, or roughly $218,000 a unit. The property is in Silver Springs, Md.

Net proceeds to Home Properties, after closing costs and $35.9 million in debt repayments, were $60.3 million, the company said. A gain of roughly $36 million will be recorded in the fiscal 2013 first quarter.

“The sale of Falkland Chase monetizes the value of entitlements we obtained to increase the density on the north parcel of this property,” said Edward Pettinella, Home Properties’ president and CEO, in a statement. “The sale also is consistent with our strategy to lighten our development exposure and D.C. region geographic concentration.”

Home Properties purchased Falkland Chase in September 2003.

In addition, South Bay Manor, a property containing 61 units located in Sayville, Suffolk County, was sold for $11.1 million, or roughly $182,000 a unit. Net proceeds to Home Properties, after closing costs and $6.5 million in debt assumed by the buyer, were $4.4 million. A gain of some $5 million will be recorded in the 2013 first quarter.

Home Properties purchased South Bay Manor in September 2000.

The company said it expects to use proceeds from both sales to reduce secured debt and for property acquisitions, property upgrades and development costs.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
 


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