Camden Property Trust is moving upstream by jettisoning its massive holdings in aging Las Vegas apartments.
The REIT told analysts during a conference call April 29 that it had sold its portfolio of 4,918 apartments spread across 15 complexes for $630 million. That works out to about $125,000 per unit.
The buyers are The Bascom Group and Oaktree Capital Management.
The 15 properties are 95 per cent leased but at rates that trail the market. That was a factor in the decision to sell, said Richard J. Campo, Camden chairman and CEO.
He explained the REIT is looking to improve the quality of its properties, even if that ends its lengthy stay in the Las Vegas market.
The deal allows Camden to increase its revenue per apartment unit from a $1,042 per month to $1,566 per month.
He said Camden would use the proceeds “to reinvest in development on a significant cash-flow positive basis, pay down debt, and return capital to shareholders.”
All of the properties sold bore the Camden name. The largest were Camden Palisades with 624 units; Camden Del Mar, 560 units and Camden Bel Air, 528 units.
