Shares of Elme Communities plunged after a subsidiary of the Beitel Group terminated an agreement to purchase an apartment community for $280 million, throwing a wrench into the company's liquidation effort.
Shares were down 36% to $1.30 as of midday Thursday. The stock has fallen 93% year-to-date.
The subsidiary had agreed in May to purchase the 1,222-unit Riverside Apartments in Alexandria, Va., from Elme. But the buyer exercised its right to terminate the agreement during the inspection period, the company said in a Wednesday filing with the Securities and Exchange Commission.
"The company has recommenced its marketing efforts for Riverside Apartments," the company said. "Given the size of Riverside Apartments, the company anticipates the need to draw upon a different buyer pool for this property relative to the buyers for the company's other remaining multifamily properties."
The termination comes as Elme is working to liquidate the company under a plan approved by shareholders in October. As a result of the termination, Elme withdrew its estimated liquidation distribution guidance and said it may not complete its planned delisting from the New York Stock Exchange during the third quarter.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
June 25, 2026 11:58 ET (15:58 GMT)
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