- Elme Communities sold its final three D.C.-area apartment properties, completing a liquidation that began in August 2025, and plans to cease operations Nov. 6.
- The Kenmore and 3801 Connecticut Ave. brought $103.2M in net proceeds, while the 1,222-unit Riverside Apartments sale retired a $520M Goldman Sachs loan.
- Elme’s exit, following a $1.9B portfolio sale to Cortland and three payout cuts in 2026, shows the pricing friction public REITs face when selling off assets.
Elme Communities has completed its liquidation after selling its final three Washington, D.C.-area apartment properties, according to Bisnow. The Bethesda-based REIT expects to end operations Nov. 6 and will pay shareholders an aggregate $16.41 per common share, in line with its July estimate.
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A Wind-Down More Than a Year in the Making
Elme Communities announced its liquidation plan in August 2025, agreeing to sell 19 apartment buildings to Atlanta-based Cortland for $1.9B in cash and market its other 10 properties. The Cortland sale closed that November, and Elme has been selling the rest since.
The process wasn’t smooth. The REIT lowered its payout expectations three times in 2026.
The Details
In D.C., Elme sold the 374-unit Kenmore in Chevy Chase and the 307-unit building at 3801 Connecticut Ave., between Cleveland Park and Van Ness, for $103.2M in combined net proceeds. Both sales closed Sept. 28, and Elme didn’t disclose the buyers.
In Alexandria, Virginia, Elme sold the 1,222-unit Riverside Apartments and adjacent undeveloped land on Sept. 14. As of the end of July, it was under contract with FPA Multifamily at $250M, a month after a $280M deal with Beitel Group fell through.
Elme used the Riverside sale to fully repay all remaining obligations under a $520M loan from Goldman Sachs.
Another REIT Heads for the Exit
Elme isn’t the only vehicle winding down. DWS’s RREEF Property Trust is also moving toward a full liquidation after redemption pressure.
Elme’s path also shows how portfolio buyers drove the bulk of its exit: Cortland’s $1.9B deal covered 19 of its 29 properties, leaving one-off sales for the remainder.
Why It Matters
The three payout cuts and the $30M gap between the failed Beitel offer and the FPA contract show how much pricing friction persisted, even for large, well-located D.C.-area multifamily assets.
The completed exit also removes a long-standing public apartment owner from the region, shifting its portfolio to new owners including Cortland.
What’s Next
Shareholders are set to receive the $16.41-per-share aggregate payout as Elme winds down by Nov. 6. Watch whether the buyers of the Kenmore and 3801 Connecticut Ave. surface, and whether more public REITs choose liquidation over continued operation.
