Elme Communities 8-K

What Happened Elme Communities (through its wholly‑owned subsidiary Elme Bethesda Owner LLC) announced on May 27, 2026 that it entered into a purchase and sale agreement with CAPREIT Acquisition Corporation to sell Elme Bethesda, a 193‑unit apartment community in Bethesda, Maryland, for a contract price of $59.0 million. The agreement includes a $1.0 million aggregate earnest money deposit (first $500,000 due within two business days of signing), an inspection period that expires June 3, 2026 (unless extended), customary closing conditions, and a closing deadline no later than July 9, 2026 or 10 business days after Montgomery County issues a certificate of compliance for its right of first refusal.

Key Details

• Sale price: $59.0 million for Elme Bethesda (193 units) in Bethesda, MD.
• Parties: Seller — Elme Bethesda Owner LLC (wholly‑owned subsidiary of Elme Communities); Buyer — CAPREIT Acquisition Corporation.
• Earnest money: $1.0M total; $500,000 due within two business days of signing; remaining $500,000 due after the inspection period (inspection period expires June 3, 2026 unless extended). Deposit becomes nonrefundable after the inspection period except for seller breach or failure to satisfy conditions.
• Closing timing: No later than the later of (i) July 9, 2026 and (ii) 10 business days after Montgomery County issues a certificate of compliance; sale remains subject to customary closing conditions and adjustments.

Why It Matters This sale is one of the company’s remaining asset dispositions under its Plan of Sale and Liquidation and could contribute proceeds used to repay the company’s secured term loan and support liquidating distributions. However, the filing cautions the transaction is subject to the inspection period, closing conditions and other contingencies, and there is no assurance the sale will close on the stated terms or timeline. Investors should note the company’s broader liquidation, repayment of secured debt, and NYSE listing status remain subject to risks described in the filing’s forward‑looking statements.