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Winthrop to Buy 4 Apartment Assets

Zacks Equity Research

Mass.-based real estate investment trust (:REIT), Winthrop Realty Trust (FUR) inked a binding purchase deal to acquire 4 recently built Class A luxury apartment assets – 44 Monroe, Highgrove, Mosaic II and San Pedro Lofts – for about $246 million. The move was in line with the company’s strategy of buying high quality condo constructed multifamily assets.

44 Monroe is a 34-story residential property (184 units) in Arizona, Phoenix and Highgrove is an 18-story residential building (92 units) in Stamford, Conn.  Moreover, Mosaic II is a 29-story residential property (396 units) in Houston, Texas and San Pedro Lofts comprises 2 distinct residential buildings (89 units) in San Pedro, Calif.

Winthrop expects the acquisition of these properties to close around September to October this year, subject to customary closing conditions. For buying the assets, the company provided a non-refundable deposit worth $25.5 million. The balance amount is anticipated to stem from a mix of available cash and new secured financing.  

Notably, Winthrop is focused on riding the growth trajectory by capitalizing on opportunistic investments and the current deal is a part of such efforts. We expect the above-mentioned accretive acquisitions to enhance its portfolio quality and drive bottom-line growth.

Winthrop Realty engages in the ownership and management of real estate and real estate-related financial instruments such as CMBS, bonds, REIT preferred and common stock. The company carries a short-term Zacks Rank #1 (Strong Buy).

A number of other REITs that are also performing well include EastGroup Properties Inc. (EGP), Highwoods Properties Inc. (HIW) and Douglas Emmett Inc. (DEI). All these stocks carry a Zacks Rank #2 (Buy).

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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