ARLINGTON, Va., July 6 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), the country's leading urban multifamily real estate
investment trust, announced today that it has completed a $75 million private
placement of convertible non-voting preferred stock with Security Capital
Preferred Growth Incorporated. An initial $25 million series of shares will
be issued within ten days, and two additional $25 million series will be
issued by the end of the year. The issue prices for these three series range
from $36.50 per share to $39.00 per share. The dividend yield to be paid on
these preferred shares will be 7 3/4% in year one, 8 1/4% in year two, and 8
1/2% in year three and thereafter, with a minimum equivalent to the dividend
rate paid on the company's common shares. Conversion to common shares is on a
one-to-one basis with call protection varying by series between three and six
years, after which the company has a right to call for cash or, under certain
conditions, conversion to common stock. Proceeds from the transaction will
enhance the company's financial flexibility in funding new development
projects slated to start construction later in 1999.
"This additional equity further increases our ability to expand our highly
successful development program," said Denny Minami, Charles E. Smith
Residential's Chief Financial Officer. "Our development projects are
delivering exceptional leasing results. For example, our 564-unit 20 story
Courthouse Place property in Arlington, Virginia opened in mid-December 1998
and is already 99% leased, and our 809-unit 52-story One Superior Place in
downtown Chicago, which opens later this summer, already has leased more than
200 units. We attribute this exceptional performance to our effective urban
living strategy, the strong appeal of our well-located, high-quality
development properties, and the excellent teams managing the lease-ups."
Among upcoming 1999 development projects, the company has an agreement
with an affiliate of Starwood Capital Group to jointly redevelop a prominent
historic landmark in Washington, D.C. -- Alban Towers. The property, which
dates from the 1920's, occupies a highly visible three acre site at the
intersection of Massachusetts and Wisconsin Avenues, diagonally opposite the
Washington National Cathedral, and its redevelopment is consistent with the
company's strategic focus on high quality urban living. Preliminary plans
involve complete interior reconstruction of the impressive 6-story structure
to provide approximately 225 luxury apartments, while preserving its
historically significant exterior and interior features. The site, like the
Cathedral across the street, is at one of the highest elevations in the city
and the upper floors of the building command exceptional panoramic views of
the Washington skyline. Estimated cost of the project is in excess of $52
million and is scheduled to start within 45 days.
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 multi-family
residential properties; and also provide a full range of real estate services
to other property owners. The Company owns a portfolio in excess of 21,500
apartment units, has over 3,300 units under construction and prepurchase
agreement, and manages an additional 3,000+ units for other owners. The total
market capitalization of the Company -- Charles E. Smith Residential Realty,
including its Operating Partnership -- exceeds $2 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, which are based on assumptions about economic and market
conditions, competitive dynamics and other factors subject to a number of
risks and uncertainties, some of which are discussed in the Company's filings
with the Securities and Exchange Commission. Actual results could differ
materially.
SOURCE Charles E. Smith Residential Reality, Inc.
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Related links:
http://www.smithreit.com
CONTACT:
Media, John Kurtz, 703-769-1153 or Investors,
Greg Samay, 703-769-1029, both of Charles E. Smith Residential
Reality, Inc.
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