Colonial Properties Trust (CLP) has acquired a 341-unit Class A apartment community, Colonial Grand at Palm Vista, based in Las Vegas for $41.2 million. The transaction was funded by borrowings against its unsecured credit facility and proceeds from market offerings.
The apartment complex is designed with striking architectural features, spacious floor plans and direct access to garages. The complex is near an apartment community, Colonial Grand at Desert Vista, which Colonial Properties already owns.
The apartment community was built in 2007 and was 95.0% occupied when it was purchased. It provides outstanding luxury and comfort to the northern Las Vegas community. Colonial Properties also owns a 700,000 square- North Las Vegas VA hospital which is expected to open in 2012.
The addition of these assets will help Colonial Properties in improving the multifamily portfolio and capitalize on the multifamily fundamentals in the long term.
Colonial Properties Trust is a multifamily-focused real estate investment trust that owns, operates and develops multifamily communities located in the Sunbelt region of the United States. Colonial Properties creates value for its shareholders with the main focus on its multifamily portfolio. As of December 31, 2010, the company owned 34,275 apartment units and 15.1 million square feet of space.
Colonial Properties currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors Equity Residential (EQR) also retains a Zacks #3 Rank, which translates into a short-term Hold rating.
COLONIAL PPTYS (CLP): Free Stock Analysis Report
EQUITY RESIDENT (EQR): Free Stock Analysis Report
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