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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.

Shareholder Windfall and Next Steps

Under the terms, shareholders will receive between $14.68 and $15 per share from the Cortland deal. The total liquidation of remaining assets—including nine multifamily properties in Georgia, Maryland, Virginia, and Washington, D.C., plus one office building in D.C.—is expected to push payouts between $17.58 and $18.50 per share once complete.

Elme expects to wrap up the sale of its remaining properties within 12 months of the Cortland closing. To bridge the transition, Goldman Sachs Bank USA has committed $520 million in debt financing secured by assets not included in the Cortland package.

A Historic Shift in Real Estate

Lead independent trustee Benjamin Butcher underscored that the decision to liquidate was unanimous: “Our evaluation process was robust, and this course of action provides the greatest value compared to continuing operations.”

For Cortland, advised by King & Spalding LLP, the deal cements its footprint in key multifamily markets, while for Elme, the sale represents not just a transaction—but the end of its nearly 60-year journey as a major REIT player in the nation’s capital region.