CENTERSPACE ANNOUNCES SALE OF NINE COMMUNITIES IN MINNESOTA AND NEBRASKA

Rhea-AI Summary

Centerspace has announced the sale of nine communities in Minnesota and Nebraska for a total of $144.3 million. This includes four communities in St. Cloud, two in the Omaha-Lincoln area, and three in the Minneapolis-St. Paul region, totaling 1,567 homes. Proceeds will be utilized to reduce outstanding debt, enhancing financial flexibility and lowering leverage. CEO Mark Decker highlighted the strategic timing of the sale, aligning with ongoing demand for affordable housing. This transaction is expected to bolster the company’s earnings potential and overall financial health.

Positive

• Sale of nine communities for $144.3 million improves financial flexibility.
• Reduction of outstanding debt enhances balance sheet strength.
• Aligns with strong demand for affordable housing, boosting earnings potential.

Negative

• None.

MINNEAPOLIS, March 16, 2023 /PRNewswire/ -- Centerspace announced the sale of nine communities located in Minnesota and Nebraska for an aggregate sales price of $144.3 million. The sale included four communities in the St. Cloud market comprising 692 homes, two communities in the Omaha-Lincoln market comprising 498 homes, and three communities in the Minneapolis-St. Paul market comprising 377 homes.

Proceeds from the sale will be used to pay down outstanding debt, thus reducing leverage and increasing the weighted average maturity of the Company's debt obligations. 

CBRE served as the broker for all Minnesota communities while MMG Real Estate Advisors brokered the communities in Nebraska.

"This is another step in our strategy to boost the quality of our homes, earnings power of the company, and flexibility of our balance sheet," said Mark Decker, Centerspace President and CEO. "The continued demand for affordable housing options in our markets made this an attractive time to sell these communities and improve our Company."

About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, the company currently owns 75 apartment communities consisting of 13,498 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2022 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

Contact Information
Joe McComish, Investor Relations
Phone: (701) 837-7104
E-mail: IR@centerspacehomes.com

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SOURCE Centerspace

FAQ

What is the total sales price for Centerspace's communities in Minnesota and Nebraska?

The total sales price for the nine communities sold by Centerspace is $144.3 million.

How many homes were included in the sale of communities by Centerspace?

The sale included a total of 1,567 homes across nine communities.

What markets did Centerspace sell communities in?

Centerspace sold communities in the St. Cloud, Omaha-Lincoln, and Minneapolis-St. Paul markets.

What will Centerspace do with the proceeds from the community sales?

Proceeds from the sale will be used to pay down outstanding debt, reducing leverage.

Who was the broker for the sale of Centerspace's communities?

CBRE brokered the Minnesota communities, while MMG Real Estate Advisors handled the Nebraska properties.