Elme Communities completes strategic review process, enters PSA with Cortland

Elme Communities (ELME) has completed its previously announced formal evaluation of strategic alternatives to maximize shareholder value. After an extensive evaluation of strategic alternatives available, the company has entered into a Purchase and Sale Agreement with an affiliate of Cortland Partners, a vertically integrated, multifamily real estate investment, development, and management company, under which Cortland will acquire a 19-asset portfolio from Elme for $1.6B in cash, subject to certain adjustments. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions including the receipt of approval from the company’s shareholders. The Portfolio Sale Transaction is not contingent on the receipt of financing by Cortland. In connection with the PSA, the Elme Board of Trustees approved a plan of sale and liquidation. The Plan of Sale and Liquidation contemplates the voluntary liquidation and dissolution of the company by the sale or disposition of all the company’s remaining assets. The sale of the 19-asset portfolio in the Portfolio Sale Transaction would be the first step in the Plan of Sale and Liquidation. Elme intends to market for sale its remaining nine multifamily assets, as well as Watergate 600. The Plan of Sale and Liquidation is subject to approval from the company’s shareholders. The company intends to commence the marketing and sale of its remaining assets in the near future with a view toward completing these asset sales within the next 12 months.