Landmark Apartment Trust of America Inc. expects $219 million from preferred stock sale
Richmond-based Landmark Apartment Trust of America Inc. plans to sell up to 21.9 million shares of preferred stock to affiliates of iStar Financial Inc. and Blackstone Real Estate Special Situations Advisors LLC.
The company expects the move, involving its Series D preferred shares, to result in proceeds of $219 million. Landmark plans to use to the money to redeem existing Series A and B preferred stock and to make acquisitions.
“With our robust pipeline of quality multifamily communities in the Sunbelt, we believe this transaction will contribute to our efforts to create lasting value for our investors,” Joseph Lubeck, Landmark’s executive chairman, said in a statement.
In conjunction with the investment, the company is expanding its board of directors to add Karl Frey, a representative of iStar Financial. A representative from The Blackstone Group LP will be added to the board either on July 8, 2014 or upon the resignation of any existing board member.
Landmark is a real estate investment trust (REIT) that owns and operates more than 13,000 apartments and provides management services for an additional 13,000 units owned by affiliates throughout the South.