Landmark Apartment Trust Receives Strategic Investment from Blackstone and iStar Affiliates
Landmark Apartment Trust Receives Strategic Investment from Blackstone and iStar Affiliates
-Commits to issue $219.0 Million of Preferred Shares-
-Transaction Enhances Balance Sheet and Establishes Relationships with Two Best-in-Class Capital Partners-
RICHMOND, Va.--(BUSINESS WIRE)-- Landmark Apartment Trust of America, Inc. (the "Company") today announced that it has agreed to issue up to 21.9 million shares of Series D Preferred Stock (the "Series D Preferred Shares") to affiliates of iStar Financial Inc. (NYS: SFI) and Blackstone Real Estate Special Situations Advisors LLC resulting in proceeds to the Company of $219,000,000. The Company intends to use proceeds from the issuance for the full redemption of existing Series A and B Preferred Stock and the acquisition of assets.
"We are excited to begin a partnership with affiliates of two highly regarded companies in the real estate finance sector, iStar Financial and Blackstone . Additionally, with this transaction we are able to lower our cost of capital and continue to fund additional acquisitions and redevelopment activities. 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," stated Joseph Lubeck, Executive Chairman of Landmark Apartment Trust of America.
In conjunction with the investment, the Company announced today the expansion of the Board of Directors to add Karl Frey, a representative of iStar Financial. Mr. Frey has more than 30 years of real estate investment experience and has been responsible for real estate finance, investment and development of commercial projects for institutional investors and owners including MetLife, AIG, Prudential (PruExpress), The Home Depot, Insignia and Starwood Capital. He is a Council Member of the Urban Land Institute and attended MIT on a full Navy/Marine Corps Scholarship. Additionally, a to-be-named representative from The Blackstone Group LP will be added to the Board of Directors either one year from today or upon the resignation of any existing Board member, whichever occurs first.
Evercore Partners acted as the exclusive financial advisor to the Company in this transaction.
About Landmark Apartment Trust of America, Inc.:
Landmark Apartment Trust of America, Inc. is a Richmond, Virginia-based real estate investment trust (REIT) that owns and operates over 13,000 apartment units, and provides management services for an additional 13,000 units owned by affiliates, located throughout the Southern United States. The Company aims to unlock hidden value and unrealized cash flow through the below market acquisition and repositioning of mid-income multifamily properties in targeted Southern markets, where the management team can apply its expertise to create a competitive advantage. For more information about Landmark Apartment Trust of America, Inc. please visit http://www.landmarkapartmenttrust.com/.
ICR for LATA
Investors:
Stephen Swett, Stephen.swett@icrinc.com
Kara Guaraldi, Kara.Guaraldi@icrinc.com
or
Media:
Jason Chudoba, 646-277-1249
Jason.chudoba@icrinc.com
KEYWORDS: United States North America Virginia
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