Elme Communities Sells Riverside for $250M, Repays Term Loan

What Happened
Elme Communities (ELME) announced the September 14, 2026 closing of the sale of Riverside Apartments in Alexandria, VA for $250.0 million. The company used part of the sale proceeds to repay in full and terminate the senior secured term loan originally made on November 12, 2025 by Goldman Sachs Bank USA (the Term Loan). Prior to the Riverside closing, the remaining outstanding balance of the Term Loan was approximately $198.6 million; all related mortgages and liens securing the loan were released upon repayment.

Key Details

• Riverside Apartments sale closed on September 14, 2026 for $250.0 million (subject to customary prorations/adjustments).
• Term Loan: originally a $520.0 million senior secured loan (Nov 12, 2025); approx. $198.6 million outstanding before repayment; repaid and loan agreement terminated on Sept 14, 2026.
• The Term Loan had been secured by first-priority mortgages on 10 remaining properties, pledges of borrowers’ equity interests and customary covenants and default provisions. All mortgages/liens on those properties were released upon repayment.
• Elme filed pro forma financial statements reflecting the Riverside disposition, the previously disclosed Elme Bethesda sale (Aug 11, 2026), and the dispositions of 3801 Connecticut Avenue and The Kenmore, each considered probable and expected to close in late Sept/early Oct 2026.

Why It Matters
For investors, the Riverside sale and full repayment of the Term Loan meaningfully reduce Elme’s leverage and remove near-term debt obligations, interest costs and lender covenants tied to that facility. The release of mortgage liens improves flexibility over the remaining assets and supports the company’s ongoing Plan of Sale and Liquidation strategy. However, Elme’s ultimate cash position and timing of distributions still depend on the completion and proceeds of other property sales and on liquidation costs and contingencies disclosed in the company’s forward‑looking statements.