Elme Communities' planned liquidation hit a snag when a subsidiary of The Beitel Group terminated the purchase and sale agreement for the 1,222-unit Riverside Apartments in Alexandria, Virginia, and related undeveloped land, at a contract sale price of $280 million. The termination occurred on June 17 after an extended inspection period, and Elme refunded Beitel's earnest money. Elme has recommenced sales efforts for Riverside, expecting to market it to a different buyer pool given its size, while three other property sales—Elme Bethesda, The Kenmore, and 3801 Connecticut Avenue—remain under contract for aggregate gross proceeds of $168 million, though closings are subject to conditions. The REIT completed the sale of the 210-unit Elme Watkins Mill to RailField Partners on June 10, using net proceeds to repay part of a $520 million term loan, leaving $251 million outstanding. Following the Riverside termination, Elme withdrew its previously estimated liquidating distribution range of $16.74 to $17.02 per common share and is not providing an update at this time.
Elme CommunitiesSale of Riverside Apartments terminated, forcing withdrawal of liquidating distribution guidance.