Home News KBS Legacy Partners to Sell Charlotte Multifamily Property to Bluerock

KBS Legacy Partners to Sell Charlotte Multifamily Property to Bluerock

KBS Legacy Partners Apartment REIT Inc., a publicly registered non-traded real estate investment trust, has agreed to sell Wesley Village in Charlotte, North Carolina to Bluerock Real Estate for $58 million.

Wesley Village is a 301-unit apartment complex situated on roughly 11 acres of land and was originally purchased in November 2012 for $44.4 million. The property represents approximately 10.1 percent of the company’s assets and 9.9 percent of the its total revenues for the nine months ended September 30, 2016.

KBS Legacy recently hired Holliday Fenoglio Fowler to market for sale its 11-property, 3,039-unit multifamily portfolio. The properties were originally purchased between 2010 and 2014 for a combined $412 million.

KBS Legacy independent director, Gary Kachadurian, who also sits on the board of Bluerock Residential Growth REIT (NYSE: BRG) and is vice chairman of BRG Manager, recused himself from all deliberations relating to the potential transaction.

If the sale is completed, KBS Legacy intends to use some of the proceeds to make renovations at certain of its remaining properties and pay a special distribution to its stockholders.

The company expects that the distribution will constitute a return of a portion of the stockholder’s invested capital and will also reduce the company’s $9.35 estimated net asset value. The REIT may also adjust the ongoing distribution rate to maintain the current distribution coverage.

KBS Legacy Partners Apartment REIT is sponsored by KBS Capital Advisors and affiliates of Legacy Partners Residential Realty and commenced its initial offering in March 2010 and terminated in March 2014 after raising approximately $200 million. As of September 30, 2016, the company’s $468.4 million portfolio was comprised of 11 multifamily properties.

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