UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
June 12, 1996
Date of Report (Date of earliest event reported)
MID-AMERICA APARTMENT COMMUNITIES, INC.
(Exact Name of Registrant as Specified in Charter)
TENNESSEE 1-12762 62-1543819
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification Number)
6584 POPLAR AVENUE, SUITE 340
MEMPHIS, TENNESSEE 38138
(Address of principal executive offices)
(901) 682-6600
Registrant's telephone number, including area code
(Former name or address, if changed since last report)
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Item 5. OTHER EVENTS.
Following notification of the New York Stock Exchange, the following
press releases were released to the press on June 6, 1996 and June 11, 1996.
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Memphis, Tennessee, June 6, 1996. Mid-America Apartment Communities, Inc
(NYSE:MAA) today announced the sale of two apartment communities totaling
484 units acquired last year through its merger with America First REIT, Inc.
and previously identified as candidates for disposition.
The 384-unit Laguna Pointe Apartment Community in Mesa, Arizona sold June 4
for $7.6 million and assumption of bond indebtedness of $7.7 million. The
Company had a gross investment in this property of $13.4 million.
The Company sold its 100-unit Park at 58 Apartment Community in Chattanooga,
Tennessee in early May for $1.9 million, in which the Company had a gross
investment of $1.8 million.
Eric Bolton, MAA's Chief Operating Officer said "These sales reinforce our
commitment to our long term strategy of owning properties where our intense
management focus can add value. The Mesa property is geographically outside
our primary management area, and the Chattanooga property is positioned below
our target market. We plan to replace these shortly with one or more
properties which better fit our present operations."
MAA CFO Simon Wadsworth said "the sales will result in a total capital gain
for book purposes of approximately $1.9 million. We anticipate that the tax
gain from the Laguna transaction will be deferred through a like-kind
exchange. Based on our current analysis, the replacement properties will be
added at a similar NOI yield."
MAA is a self-advised, self-managed REIT which owns 18,410 apartment units
(including 234 development units) in 12 states, primarily in the southeast.
For further information, please contact Louise Bagby at (901) 682-6668
ext. 105.
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Memphis, Tennessee, June 11, 1996. Mid-America Apartment Communities,
Inc. (NYSE:MAA) today announced that it has entered into a contract
to purchase three apartment communities totaling 816 units for a total
of $32 million.
Two of the three properties are located in DeSoto County Mississippi,
contiguous to Memphis, and the other is located in Jackson, Mississippi.
The Company owns and manages 4,092 apartment units in Memphis and
1,589 apartment units in Jackson.
Savannah Creek in Southaven, MS has 204 apartment units and was built in
1989. It has an average monthly rent of $549, and is presently 100%
occupied. Sutton Place in Horn Lake, MS has 252 apartment units and was
built in 1991. It has an average monthly rent of $525, and is
presently 100% occupied.
Crosswinds, located in Pearl, a suburb of Jackson, MS, has 360 apartment
units, and was built in 1989. It has an average monthly rent of $570, and
is presently 99% occupied.
Eric Bolton, MAA's Chief Operating Officer said "We are pleased to add
these properties that fit well within our overall growth strategy. By
continuing to concentrate our resources in areas where we can focus our
management and generate operating efficiencies, we will deliver a superior
service to our residents and thus attractive returns for our shareholders.
At an average size of 1,150 sf, the apartments will be the largest in our
portfolio and present us with a special marketing advantage."
MAA CFO Simon Wadsworth said "There are several items of due diligence that
remain to be completed before the anticipated closing in late July. These
properties can be used as part of the exchange to defer the tax gain from
our recent sale of Laguna Pointe in Mesa, AZ, and if we are unable to
conclude our final negotiations satisfactorily, we have several other
attractive properties in mind. We anticipate that the properties will
deliver a capitalization rate of 11% before replacement reserves and
management expense."
The Company plans to use the cash proceeds from two previously
announced recent sales, plus its line of credit, to fund the purchase of
these properties.
Mid-America Apartment Communities is a self-advised, self-managed REIT
which owns 18,410 apartment units (including 234 development units) in
12 states, primarily in the southeast.
For further information, please contact Louise Bagby at (901) 682-6668,
ext. 105.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MID-AMERICA APARTMENT COMMUNITIES, INC.
Date: June 12, 1996 Simon R.C. Wadsworth
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SIMON R.C. WADSWORTH
(Executive Vice President and
Financial Accounting Officer)
