Elme Communities Announces $250M Riverside Sale; Liquidation Update

What Happened
Elme Communities (ELME) announced on July 24, 2026 that a wholly owned subsidiary, Elme Riverside Apartments LLC, entered into a purchase and sale agreement on July 23, 2026 with FPA Multifamily, LLC to sell Riverside Apartments (1,222 units in Alexandria, VA) and related undeveloped land for a $250.0 million contract price. The filing also updates Elme’s ongoing Plan of Sale and Liquidation: as of July 24, 2026 the Trust has sold six of the ten properties remaining after the November 12, 2025 portfolio sale and has four properties under contract expected to generate approximately $418 million of aggregate gross proceeds.

Key Details

• Riverside sale: $250.0 million contract price; 1,222-unit property in Alexandria, VA; purchase agreement signed July 23, 2026; target closing no later than September 14, 2026.
• Earnest money: $4.0 million total ($2.0M due within one business day of signing; remaining $2.0M due after the inspection period which expires August 20, 2026), with the second installment becoming nonrefundable except for limited seller breach or other specified exceptions.
• Bethesda sale amendment: the Elme Bethesda purchase agreement (previously disclosed May 27, 2026) was amended to set closing no later than August 11, 2026 after receipt of Montgomery County compliance.
• Liquidation assumptions: Elme updated estimated ranges for Additional Liquidating Distributions based on projected gross proceeds, transaction and operating costs, repayment of its $520M senior secured term loan (including an expected interest-rate increase in August 2026), and used ~88.9 million fully-diluted shares for per‑share estimates. Sales are assumed to close in Q3–Q4 2026.

Why It Matters
These property sale agreements and the updated liquidation estimates are central to Elme’s wind‑down plan and to the size and timing of any additional liquidating distributions to shareholders. The Riverside sale (if closed) and the contracts for the remaining properties would generate material cash proceeds that will be used to repay the Term Loan and fund liquidating distributions, but the company cautions the estimates are forward‑looking, subject to closing conditions, regulatory processes (including DC TOPA), financing covenants, and other risks — so timing and amounts of distributions are not guaranteed.