Inland Residential Properties to Sell The Retreat at Market Square for $47 Million
February 19, 2019
On February 12, 2019, Inland Residential Properties Trust, Inc. entered into an agreement with an unaffiliated third party to sell the property located at 300 Cormorant Place, Frederick, Maryland, commonly known as “The Retreat at Market Square” for approximately $47.0 million excluding closing costs, commissions, and certain prorations and adjustments. The sale is expected to close by March 29, 2019, subject to the closing conditions set forth in the agreement being satisfied.
The REIT purchased the property in 2015 for $45.7 million. It consists of 206 residential units. As of September 30, 2018, the principal amount of the associated mortgage was $27.45 million at a 3.64% interest rate.
On December 20, 2018, the REIT’s stockholders approved a plan of liquidation and dissolution of the company, including the sale of all or substantially all of the assets of the REIT. Also, all outstanding shares of the REIT’s Class T shares and Class T-3 shares were converted to shares of Class A common stock on January 23, 2019. The REIT paid an initial liquidating distribution on January 25, 2019 of $4.53 per share.
The initial liquidating distribution was made from the proceeds of the sale of the property commonly known as “The Commons at Town Center”. The Commons at Town Center was sold at a contract sale price of approximately $24.6 million, which reflects an overall increase of 6.3% compared to the REIT’s original cost of the property. In addition, the REIT is currently under contract to sell the property commonly known as “Verandas at Mitylene” at a contract sale price of approximately $40.5 million, which reflects an overall increase of 10.7% compared to the REIT’s original cost of the property.