CNL Growth Properties, a publicly registered non-traded REIT, sold Modera at Spring Town Center, a 396-unit multifamily community, to Abbey Residential LLC for $49.8 million, according to a filing with the Securities and Exchange Commission.
In December 2013, CNL Growth and MCRT Spring Town LLC formed a joint venture to purchase a 19.5-acre parcel of land located in the Houston suburb of Spring, Texas on which to develop the property. The property had a total development budget of $46 million, and CNL Growth holds a 95 percent interest in the joint venture.
The net cash to the REIT was approximately $16.4 million after repayment of approximately $31.4 million of debt and other closing costs, reserves, and distributions to its joint venture partner.
The DI Wire reported on Monday that the REIT sold an Arizona multifamily property for $41.8 million. The recent sales are part of CNL Growth’s ongoing liquidation plan that was approved by stockholders in August 2016.
CNL Growth Properties, formerly known as Global Growth Trust, commenced its $1.5 billion initial public offering in October 2009. In April 2013, the REIT closed the offering after raising approximately $94.2 million and changed its name to CNL Growth Properties. In August 2013, the company initiated a follow-on offering and refined its investment focus on multifamily development projects in the Southeast and Sun Belt regions of the U.S. The combined offerings raised a total of $208 million in investor equity. CNL Growth Properties’ portfolio consists of five class A multifamily properties.