Centralized Painter

Elme separates from its chief information officer amid downsizing. The announcement comes on the heels of the REIT's closing on the $1.6 billion sale of 19 properties to Cortland Partners. Dive brief: * Elme Communities announced a mutual separation with senior vice president and chief information officer Susan Gerock as part of a broader restructuring for the Bethesda, Maryland-based REIT, according to a filing with the Securities and Exchange Commission last week. Gerock's resignation was effective on Nov. 14. * In addition, Elme announced the closing of the sale of 19 properties to an affiliate of Atlanta-based investor, developer and manager Cortland Partners for $1.6 billion in cash, according to a press release. It aims to sell all of its assets by June 2026. * As a result of the closing of the Cortland sale, the company will downsize its workforce, "with a focus on retaining an appropriate level of personnel with the necessary skill set commensurate with the reduced size of the company, including those executive officers and other key personnel necessary for the continued operation of the company's remaining assets and completion of the wind-down activities," according to the SEC filing. Dive insight: Elme's downsizing will affect both officers and other employees. As of Nov. 14, the REIT had approximately 117 employees, including approximately 73 persons engaged in community management functions. After initiating a "formal evaluation of strategic alternatives" earlier this year, Elme took the first step to liquidating the company by selling the 19-asset portfolio to Cortland Partners in August. In conjunction with the August sale announcement, the REIT's board of trustees approved a plan of sale and liquidation under which the company would market its remaining nine multifamily assets, as well as Watergate 600 - an office asset - with the goal of a sale in the next 12 months. Following the closing of the Cortland sale, Elme and certain subsidiaries entered into a loan agreement with Goldman Sachs Bank USA, as lender, for a senior secured term loan with a principal amount of $520 million and a maturity date of Nov. 9, 2026. The REIT has the option to extend for an additional year. The term loan is intended to be repaid with the net proceeds from sales of the properties securing the term loan. Elme intends to return net proceeds from the portfolio sale, and a portion of the proceeds from the new term loan, to shareholders through an initial special liquidating distribution, which is expected to be between $14.50 and $14.82 per common share. This should happen after taking into account repayment of all existing corporate indebtedness, payment of costs and expenses related to the transactions and establishment of reserves in connection with the new term loan. Elme expects the initial special liquidating distribution to be declared later this year and paid in January 2026, subject to approval by the REIT's board of trustees. "With the completion of the portfolio sale to Cortland, our focus is on monetizing the company's remaining assets and maximizing value for shareholders," Paul McDermott, president and CEO, said in last week's press release. "We launched the sale process in the third quarter of this year and are aiming to complete all remaining sales by June 2026. Our goal remains to sell all of Elme's assets as soon as practicable to accelerate the return of capital to shareholders." Over the past several years, Elme, formerly known as WashREIT until 2022, has expanded its presence outside the Washington, D.C., metro area by acquiring properties in Atlanta. Still, its stock continued to trade at a discount to values in the private market, forcing the REIT to explore alternatives.

Cortland Partners, LLC has agreed to acquire a 19-property portfolio from Elme Communities for $1.6 billion.

Cortland survey shows paradigm shift for many U.S. rentersATLANTA, March 6, 2025 /PRNewswire/ -- Nearly half (43%) of American renters say renting has enhanced their quality of life compared with owning a home. Among these respondents, affordability (59%), location convenience (51%), and maintenance/support (49%) were the top contributors to quality of life, according to a new survey by Co rtland that shares insights from 1,000 adult renters in the U.S.The data indicates a substantial divergence from traditional views of the American Dream, with only 32% of renters seeing homeownership as part of their ideal life trajectory. For those opting out of buying a home, avoiding maintenance and debt are the primary motivators, cited by 45% and 40% of respondents, respectively."The landscape of American living is evolving, and apartment living is no longer just a temporary phase," Cortland President of Operations Juan Bueno said. "For many, it's a deliberate choice due to the flexibility, and amenities renting offers, in addition to enhanced experience, community and freedom from the burdens often associated with traditional homeownership."Generational trends also shed light on shifting perceptions: While nearly half (41%) of Gen Z and millennial renters are unsure or doubtful about the feasibility of homeownership, a strong majority ─ 84% of Gen Z and 81% of millennials ─ report being at least somewhat satisfied with renting as a viable alternative. Among older generations, 71% of renters Gen X and older said they are at least somewhat satisfied with their current renting situation as an alternative to homeownership.Additional survey insights include:Top perceived barriers to homeownership are high housing costs (58%), rising living expenses (52%), and lack of savings (46%).Those who intend to be lifelong renters report they have higher expectations for rental properties (53%), and renters overall generally believe renting can meet their needs and preferences in a similar way to homeownership (49%).A third of renters who feel renting has enhanced quality of life attribute the improvement to a sense of community (34%).While a suburban setting is the most overall desired location (42%) among renters if they knew they would be renting permanently, a majority (38%) of respondents in the Northeast would prefer urban/city renting.Respondents who indicated they had previously owned at least one property were more likely than those who had never owned to indicate renting has increased their quality of life (52% vs