CLEVELAND, March 19 /PRNewswire-FirstCall/ -. Associated Estates Realty
Corporation (NYSE: AEC) today announced the sale of 10 of its 11 affordable
properties, totaling 995 units, to a privately held, regional buyer. The
total of the sales prices reflects an overall capitalization rate of 8.5
percent, based on trailing 12 month net operating income and after $700 per
unit of capital expenditures and a 3 percent management fee. The Company's
one remaining affordable property is under contract to sell and is expected
to close during the second quarter. The Company anticipates using proceeds
from the sales to either fund future acquisitions, pay down debt or for
general corporate purposes.
Commenting on the dispositions, John Shannon, senior vice president of
operations said, "We are very proud of our legacy in the affordable housing
business. Selling these communities is consistent with our strategic plan
and allows us to continue to focus on the growth of our market-rate
portfolio."
Associated Estates Realty Corporation is a real estate investment trust
("REIT") and is a member of the Russell 2000 Index. The Company,
headquartered in Richmond Heights, Ohio, directly or indirectly owns or
manages or is a joint venture partner in 57 properties containing a total
of 14,071 units in nine states. For more information about the Company,
please visit its website at http://www.aecrealty.com .
For more information, please contact:
Michael Lawson
Vice President of Investor Relations
216-797-8798
mlawson@aecrealty.com
SOURCE Associated Estates Realty Corporation
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Related links:
http://www.aecrealty.com
CONTACT:
Michael Lawson, Vice President of Investor
Relations of Associated Estates Realty Corporation,
+1-216-797-8798, mlawson@aecrealty.com
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