ARLINGTON, Va., Jan. 5 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), the country's premier urban multifamily real estate
investment trust, announced today that it has acquired the 442-unit high-rise
Buchanan House apartments in Crystal City for a purchase price of $60 million,
from a private investment company. With the acquisition of the Buchanan House,
Smith Residential now owns 4,450 apartment units in the strong Crystal
City/Pentagon City submarket, further extending the company's leadership
position in that submarket. The acquisition was financed in part with $18
million in proceeds from the December, 1998 sale of Marbury Plaza, a 672-unit
property in southeast Washington, D.C.
"0ur strategy is to concentrate our property ownership in strong urban
centers, such as Crystal City, where we target urban lifestyle renters," said
Ernest Gerardi, Jr., President of Charles E. Smith Residential. "The addition
of Buchanan House increases our leading position in this key high-rise
submarket to a 68% market share, so the property's performance will benefit
from our operating and marketing efficiencies. Concurrently, we were able to
finance a portion of the acquisition through the sale of a property that was
not in one of our targeted submarkets, realizing a $15 million gain on sale
and demonstrating our commitment to enhance our portfolio by reallocating
investment capital from lower to higher growth opportunities."
The Buchanan House has 442 apartment units, averaging 1,173 square feet in
size. Over 90% of the units have recently undergone kitchen and bathroom
renovations, and Smith Residential plans to invest $5 million in additional
renovations and upgrades. Located in the heart of Crystal City, the property
also includes a 900+ car commercial parking garage and 70,000 square feet of
commercial/retail space, which will be upgraded by Smith through its Retail
Services affiliate. The acquisition was funded from the asset sale, the
company's bank line of credit and debt assumption.
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the Now York Stock Exchange (SRW). The Company and
its subsidiaries and affiliates own, acquire, develop, and manage multi-family
residential properties; and in addition, provide a full range of real estate
services to other property owners. The Company owns a portfolio of
approximately 20,000 apartment units, has 3,400 units under construction or
pre-purchase agreement, and manages an additional 3,800 units for other
owners. The total market capitalization of Charles E. Smith Residential
Realty, including its Operating Partnership, is approximately $2.0 billion.
Investor information including press releases about Charles E. Smith
Residential Realty is available on the Company's Web site at
http://www.smithreit.com, and also through PR Newswire "News on Call" by fax
800-758-5804, ext. 101271, or at: http://www.prnewswire.com.
This news release contains forward-looking statements regarding the
Company's outlook, including statements of goals, intentions, and expectations
regarding or based on assumptions about general economic and market
conditions, competitive dynamics and other factors that, by their nature, are
subject to significant uncertainties, some of which are discussed in the
Company's filings with the Securities and Exchange Commission. Because of
these uncertainties, and the assumptions on which statements in this release
are based, actual future results may differ materially.
SOURCE Charles E. Smith Residential Realty, Inc.
 back to top
Related links:
http://www.smithreit.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 101271
CONTACT:
For Media: John Kurtz, 703-769-1153; or For
Investors: Greg Samay, 703-769-1029; both of Charles E. Smith
Residential Realty
|
