Synthetic stucco problem requires Post to fix 30 properties

Post Properties plans to spend $40 million to $45 million to fix water leakage at 30 properties totaling 11,000 apartments.

The intrusion is occurring at buildings with stucco or synthetic stucco exteriors commonly referred to as EIFS.

“This is a construction method that was prevalent in the 90s. We don’t use it anymore,” David Stockert, Post’s CEO and president, told analysts Tuesday.

Post would not identify the affected Atlanta properties.

“We have not disclosed and don’t plan to,” Stockert said after the third-quarter earnings call. “Residents will obviously be informed as the work at a particular community is commenced.”

The work could take up to two years and might involve replacing or repairing siding, windows, doors, roofs, gutters, sealants and coatings.

Workers will have to access apartments, which might hurt the occupancy rate, the company acknowledged. But Post said it managed to do $1.5 million of repair work in Houston, one of its strongest markets, and occupancy there increased.

Stockert said “in very limited cases” insurance might cover the cost.