Inland Residential Properties Trust Inc., a non-traded real estate investment trust sponsored by Inland Real Estate Investment Corporation, has sold The Verandas at Mitylene, a 332-unit multifamily community located in Montgomery, Alabama, for $40.5 million. The property was acquired in July 2017 for nearly $36.6 million.
The Verandas at Mitylene is the third and final of the REIT’s assets to be sold as part of the company’s liquidation and dissolution plan, approved by shareholders in December 2018.
The first property sold, Commons at Town Center, an 85-unit multifamily property located in Vernon Hills, Illinois, was acquired in May 2017 for $23 million and sold in December 2018 for nearly $24.6 million.
The second property, The Retreat at Market Square, a 206-unit multifamily community located in Frederick, Maryland, was purchased in September 2015 for approximately $45.8 million and sold in March 2019 for $47 million.
Inland Residential has declared its final liquidating distribution of $7.81 per share, which will be paid this week to stockholders of record as of September 16, 2019.
“This transaction represents the culmination of our strategic liquidity plan for Inland Residential, and we are pleased that the sale of The Verandas at Mitylene marks the third and final property in the REIT’s portfolio that was sold at a sales price greater than the purchase price at which it was acquired,” said Mitchell Sabshon, president and CEO of Inland Residential. “We believe all three transactions underscore our management team’s commitment to providing a successful and efficient liquidity process for Inland Residential’s stockholders.”
In January 2019, the REIT paid shareholders an initial liquidating distribution of approximately $4.53 per share funded from the sale of The Commons at Town Center, and its second liquidating distribution of $8.59 per share was paid in April 2019 from the sale of The Retreat at Market Square. Liquidating distributions totaled $20.93, and shares were originally sold for $25.00.
Inland Residential Properties Trust’s $1 billion offering was declared effective in February 2015 and raised approximately $47 million in investor equity before closing at the end of 2017. The company invested in multifamily properties located primarily in the top 100 U.S. metropolitan statistical areas.