The Crosland Group Announces Acquisitions and Disposition

The Crosland Group, Inc. closed today on the purchase of two apartment communities from Summit Properties Partnership LP (“SPPLP”). The transactions were funded through the redemption of SPPLP Ownership Units and the assumption of existing debt. Summit Radbourne, a 225-unit complex fronting on W.T. Harris Boulevard in the University area, was purchased for $16.2 million, or $72,000 per unit. Summit Arbors, a 120-unit community on West Eighth Street in uptown Charlotte’s Fourth Ward, was purchased for $10.1 million, or $84,300 per unit.

On June 12, Crosland and its partner, Northwestern Mutual Life Insurance Company, sold Brookstone Apartments to Penobscot Management, LLC, an investment firm based in Teaneck, New Jersey. The 226-unit property is located on Drybrook Road in northeast Charlotte. Terms of the sale have been withheld pursuant to a confidentiality agreement. According to Ned Long, Crosland’s chief financial officer, “These transactions represent the beginning of our strategic objective to more actively recycle our capital. We will be targeting certain assets for sale and then redeploying that capital into acquisition or development opportunities where Crosland’s property development and operating expertise will add value to the real estate.” The disposition of another multi-family property is expected in July. “We’re very pleased with these transactions,” said Todd Mansfield, president and CEO of The Crosland Group. “We’re building our liquidity position, increasing our cash flow and at the same time focusing on value-added opportunities that strengthen the overall position of our organization.”

FOR MORE INFORMATION, CONTACT:
Edward F. (Ned) Long, 704/561-5293, nlong@crosland.com