Elme Communities has announced a sweeping plan to dismantle its real estate empire through a blockbuster $1.6 billion sale of 19 multifamily assets to Cortland Partners LLC, a deal that will ultimately trigger a full liquidation of the REIT’s portfolio.
The all-cash transaction, which includes properties across Virginia, Georgia, and Washington, D.C., is slated to close in the fourth quarter of 2025, pending shareholder approval.
From Transformation to Liquidation
The move comes after months of speculation, following Elme’s February disclosure that its board was exploring “strategic alternatives.” CEO Paul McDermott admitted in a statement that while the REIT successfully pivoted into a multifamily-focused platform, market conditions crippled its ability to reduce capital costs, making long-term growth untenable.
Once known as WashREIT before rebranding to Elme Communities in 2022, the company expanded into Sunbelt markets to reposition its portfolio. But despite casting a wide net—engaging more than 80 potential buyers ranging from pension funds to sovereign wealth funds—the board ultimately determined that a sale to Cortland followed by liquidation would deliver the best outcome for shareholders.
