ARLINGTON, Va., April 20 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), announced today that it has acquired McClurg Court,
a 1,075-unit, twin tower luxury high-rise near Lake Michigan in downtown
Chicago, for approximately $70 million.
Ernest Gerardi, Jr., President of Charles E. Smith Residential said: "This
high quality acquisition significantly advances our geographic expansion
strategy of building critical mass in our primary growth markets. It is
superbly located just a few blocks from the lake, and increases our total
existing and under construction apartment units in downtown Chicago to nearly
2,200. In 1998 to date, the company has completed property acquisitions in
the Northern Virginia, Washington, DC and Chicago markets totaling more than
$122 million."
McClurg Court is a 45-story twin tower containing 1,075 residential units
located in the prestigious Streeterville submarket of downtown Chicago. The
site is three blocks from the lake shore, just north of the Loop, and many of
its apartments offer expansive views of the lake and city skyline. The
property also includes a 52,000 square foot health club and 58,000 square feet
of commercial space, with a cinema, restaurant, bank and convenience store.
It was built in 1972. Charles E. Smith Residential acquired McClurg Court
from a private investment partnership for approximately $70 million in cash,
and plans to invest an additional $4 million in initial capital improvements
to the property. Approximately 13% of the underlying land is included in the
purchase, with the balance subject to ground leases running through the year
2067. The transaction was funded from the company's recently announced new
credit line, together with $26 million from the sale of convertible preferred
stock, which completes a private placement arranged in 1997 with Security
Capital Preferred Growth, Inc.
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange (SRW). The company and
its subsidiaries and affiliates own, acquire, develop, and manage multifamily
residential properties for its own account, and provide a full range of real
estate services to other property owners. The company owns a portfolio of
over 19,650 apartment units and two retail centers, has another 2,000 units
under construction, and manages an additional 3,500+ units for other owners.
The total market capitalization of the Company -- Charles E. Smith Residential
Realty, including its Operating Partnership -- is approximately $1.8 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.
Certain items discussed in this press release may be deemed to be forward-
looking statements. Although Charles E. Smith Residential Realty, Inc.,
believes that such statements are based on reasonable expectations and
assumptions, it can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially from the
company's expectations include real estate market conditions, information
determined in the course of due diligence review, changes in local economic
conditions and other risks detailed from time to time in the company's reports
and filings with the Securities and Exchange Commission. The company assumes
no obligation to update or supplement forward-looking statements that may
become untrue because of subsequent events.
SOURCE Charles E. Smith Residential Realty, Inc.
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Related links:
http://www.smithreit.com
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or NewsCom, 305-488-8411
http://www.prnewswire.com or fax, 800-758-5804, ext. 101271
CONTACT:
for Investors: Brian Cass, 703-769-1159; or
for Media: John Kurtz, 703-769-1153; both of Charles E. Smith
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