ARLINGTON, Va., Sept. 8 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc., (NYSE: SRW), the country's leading urban multifamily real estate
investment trust, announced today that it has agreed to acquire a 1,339-unit
5-building high-rise apartment property located on the Biscayne Bay shore of
the popular South Beach section of Miami Beach, Florida, for $85 million.
Smith Residential plans to reposition the property by making substantial
renovations, in the range of $15 to $25 million. The transaction is expected
to close in 45 days, and will involve the merger of the privately held
corporation that owns the property into Charles E. Smith Residential. It will
be funded through a combination of common stock issued to the property owner,
convertible preferred stock sale proceeds, and an assumption of debt.
"This acquisition illustrates that pursuing our urban living strategy
creates high value investment opportunities," said Ernest A. Gerardi, Jr.,
President of Charles E. Smith Residential. "In 1997 we identified Southeast
Florida as a market with excellent investment potential. It is among the top
half-dozen regions in the country in total job growth. This market is a well-
diversified economy driven by strong import/export growth with Latin America;
along with expansion in health care services, professional services,
entertainment, and tourism. It also has the nation's fourth largest
concentration of high-rise rental apartment properties. Our focus is on the
urban centers east of I-95, including downtown Fort Lauderdale and South
Beach."
"South Beach is a dynamic 24-hour city and one of the country's most
dramatic examples of successful urban revitalization," continued Mr. Gerardi.
"This property is one of the few waterfront multifamily rental properties on
South Beach, and through renovation and upgrading we will reposition it to
increase its appeal to our target market -- urban lifestyle renters. Together
with our pre-purchased development property under construction in downtown
Fort Lauderdale, this acquisition provides us with properties totaling over
1,500 units in the two premier strategic urban locations in southeast
Florida."
The acquired property is located on Biscayne Bay, with approximately 1,000
feet of waterfront, and many of its apartments have exceptional views of the
Bay and the downtown Miami skyline. Built between 1965 and 1980, the
property's extensive grounds include three swimming pools on a large terrace
along the Bay shore. The location is within walking distance of the popular
Lincoln Road restaurants, shops and entertainment, and also has quick access
to the MacArthur Causeway leading to downtown Miami. The property has
extensive ground floor common areas with expansive bay views, which Smith
Residential will renovate to provide contemporary lifestyle amenities such as
a fitness center, business center, convenience retail and entertainment
spaces.
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 real estate services to
other property owners. The Company owns a portfolio of approximately 22,000
apartment units, has over 4,000 units under construction and pre-purchase
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 -- is in excess of $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 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 investors, Greg Samay, 703-769-1029, or
for media, John Kurtz, 703-769-1153, both of Charles E. Smith
Residential Realty, Inc.
|
