CNL Growth Properties to Sell Two Multifamily Properties for $92.2 Million
CNL Growth Properties, a publicly registered non-traded real estate investment trust, signed agreements to sell two of its multifamily developments for a combined $92.2 million. Both sales are expected to close in the third quarter of 2016.
The first potential sale, Whitehall Parc, is a 298-unit, class A multifamily community located in Charlotte, North Carolina. The buyer, Bel Whitehall LLC, is expected to pay approximately $51.2 million for the 13-acre property.
Whitehall Parc was originally developed by CNL Growth Properties in a joint venture with Woodfield Investments LLC, which paid nearly $30 million for the land and subsequent construction. The REIT initially owned a 95 percent interest in the joint venture, but later purchased Woodfield’s 5 percent interest.
Aura Grand, the second potential sale, is a 291-unit, class A multifamily community located in the Houston suburb of Katy, Texas. Lloyd Jones Capital LLC signed an agreement to purchase the 14.5 acre property for $41 million.
Aura Grand was developed for approximately $32 million by a joint venture with Trinsic Residential Group, where the REIT has a 90 percent interest.
As reported by The DI Wire, the REIT is currently seeking shareholder approval to liquidate and dissolve the company. Investors will be voting on the plan at the company’s annual meeting on August 4th.
CNL Growth Properties commenced its initial public offering in October 2009 and raised approximately $208.3 million in investor equity before terminating its follow-on offering in April 2014. As of March 31, 2016, the company owned interests in 13 Class A multifamily properties.
