PHILADELPHIA--(BUSINESS WIRE)--Independence Realty Trust, Inc. (NYSE MKT: IRT) (“IRT”) today announced that on May 5, 2017, it sold a 320-unit apartment property located in Austin, Texas for $32.0 million. IRT received net cash proceeds of $23.7 million after transaction costs and full repayment of $7.0 million of underlying property specific debt.
IRT expects to recognize a gain of approximately $16.2 million associated with this sale, after transaction costs, in the quarter ended June 30, 2017.
IRT used $21.0 million dollars of the proceeds from this sale to reduce its outstanding borrowings on its line of credit.
The property sale is part of IRT’s previously announced strategy to sell its “C” class assets and reinvest the proceeds into “B” class assets located in IRT’s core geographic markets. This is the first of four sales, all expected to close during the second quarter.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE MKT: IRT) is an internally-managed real estate investment trust that seeks to own well-located apartment properties in geographic submarkets that it believes support strong occupancy and the potential for growth in rental rates. IRT seeks to provide stockholders with attractive risk-adjusted returns, with an emphasis on distributions and capital appreciation.
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These forward looking statements are based upon the current beliefs and expectations of IRT’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally not within IRT’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. These risks, uncertainties and contingencies include, but are not limited to, how IRT will use the net cash proceeds of the sale, whether and how IRT will be able to implement its strategy to sell properties, the ultimate accounting treatment of the property sale and those disclosed in IRT’s filings with the Securities and Exchange Commission. IRT undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.