BSR REIT has finalized the sale of three apartment properties in Austin, Texas, to AvalonBay Communities for $187 million.

The divested properties include Cielo I, comprising 326 apartment units; Cielo II, with 228 homes; and Retreat at Wolf Ranch, featuring 303 suites. The dispositions are part of a previously announced broader $618.5-million Texas portfolio sale to Arlington, Va.-based AvalonBay.

As part of the agreement, BSR has retained $109 million in secured mortgage debt with Fannie Mae, benefiting from a favourable interest rate of approximately 2.7%. The REIT intends to use the transaction proceeds from the transaction to reduce debt, cover transaction expenses, and pursue new high-growth investment opportunities.

This sale represents the completion of the “direct asset-sale transaction” portion of the broader two-part deal with AvalonBay, noted BSR in a news release. The second phase, valued at $431.5 million, involves the sale of six additional apartment properties in Dallas and remains subject to customary closing conditions. That transaction is expected to be finalized in the second quarter of 2025.

Toronto-based BSR specializes in owning and managing garden-style multi-family residential rental properties in key markets across the Sunbelt region of the U.S.

Pictured: A Cielo apartment property in Austin.

Photo: UMove Free

Join Canada’s leading CRE owners, investors, developers, brokers, financiers, and more at Connect Canada on May 28 at Malaparte in Toronto. Register now to catch forecasts from Canadian CRE leaders on market challenges and opportunities, insights into international investing with evolving market dynamics, the outlook for multifamily housing, and much more. www.ConnectCanada2025.com