Richmond-based Landmark Apartment Trust of America Inc. has acquired the management operations of Tampa, Fla.-based Elco Landmark Residential Holdings LLC and its affiliates for $30 million.
The deal includes some Elco property management contracts. Landmark also will assume some Elco liabilities, subject to certain earn-outs and clawback rights.
“This transaction is the next step in our overall business plan to grow the company, which began with our recapitalization transaction last August, while creating increased shareholder value,” Landmark Executive Chairman Joseph Lubeck said in a statement.
Landmark is a real estate investment trust (REIT) that owns and operates more than 10,000 apartment units located throughout the South.
The deal includes:
• Elimination of property management services at 22 assets consisting of 6,433 units either owned by or soon to-be-owned by Landmark, which were contributed to the company as part of a $536.5 million recapitalization transaction it completed with Elco on Aug. 6;
• Property management contracts on additional assets that are currently owned and managed by Elco; and
• Property management contracts on a to-be-determined number of assets related to Elco’s private-label arrangement with Timbercreek Asset Management as manager of the Timbercreek U.S. Multi-Residential Opportunity Fund, which was formed to acquire and operate assets identified for purchase by Elco that may be contributed to Landmark in the future.
The transaction is expected to close by the end of the month, subject to customary closing conditions, including obtaining necessary third-party consents. The transaction was unanimously approved by the independent members of Landmark’s board of directors.
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