ARLINGTON, Va., Oct. 22 /PRNewswire/ -- Charles E. Smith Residential
Realty (NYSE: SRW), a leading REIT specializing in urban multifamily
residential properties, today announced pre-purchase agreements for three new
apartment development properties. Two of the properties, totaling 603 units,
will be high rises in the thriving urban Rosslyn-Ballston corridor of northern
Virginia. The third property will be the 240-unit mid-rise first phase of a
mixed-use urban development in the revitalized downtown of Fort Lauderdale,
Florida, and Smith Residential holds right of first offer on the 350-unit
high-rise second phase. All three properties will be built and financed by
experienced local developers, and the purchases are scheduled to occur in late
2000 and mid-2001. The total Company investment in the three properties will
be approximately $106 million.
"These properties are excellent examples of our urban franchise investment
strategy," said Al Neely, Senior Vice President-Development for Smith
Residential, "All are high quality properties targeted at urban lifestyle
renters in strong submarkets, and all take advantage of the growing urban
revitalization trend. The Rosslyn-Ballston corridor in northern Virginia has
become a very desirable location, particularly for young professionals. It's
a 24-hour model urban center with an excellent mix of restaurants, shops and
entertainment venues -- and it has experienced strong rent growth over the
past year. Our investment strategy includes increasing our concentration of
properties in strong growth submarkets, and the addition of these two
properties will increase our presence in this submarket to a total of nearly
2,300 units -- roughly a 25% share of the submarket. Downtown Fort Lauderdale
is also undergoing a highly successful urban revitalization and the project is
an exceptionally well located infill site on the New River, within walking
distance of both the healthy downtown employment center and the popular
entertainment/retail redevelopment on Las 0las Boulevard."
The two northern Virginia projects consist of a 383-unit, 24-story
property in the Ballston neighborhood and a 220-unit, 10-story building in the
Courthouse neighborhood, each with underground parking. Both of these
properties will include a complete array of contemporary amenities and
features, and construction of each is scheduled to begin within 60 days. The
two properties will be purchased from the developer, Bush Construction
Corporation, for a total investment of approximately $74 million, including
performance incentives. The purchases are scheduled to be completed in late
2OOO and mid-2001. The Ballston property will be part of a 5-acre mixed-use
development that will include office and retail space and condominiums, and is
within walking distance of two Metrorail stations and the Ballston Commons
regional mall. The Courthouse property will be on a highly visible site on
Wilson Boulevard, just a block from the Courthouse Metrorail station and two
other Smith Residential properties.
The Fort Lauderdale property is the first phase of a multi-phase mixed-use
urban development. The 240-unit project will be six stories over an
underground parking garage, with a full array of amenities and features to
target the urban lifestyle renter. Smith Residential also holds the right of
first offer on the 350-unit high-rise second phase. This urban infill site is
superbly located along the south bank of the New River, with its recently
developed Riverwalk extending between downtown and the intracoastal waterway.
Southeast Florida continues to show strong, well-diversified employment
growth, at an annual rate of approximately 60,000 new jobs. Fort Lauderdale
is benefiting from this growth and is making substantial investments in
upgrading the civic infrastructure of the downtown area, including the
Riverwalk. These investments have dramatically enhanced the appeal of the
downtown area and increased residential demand. Smith Residential will
purchase this property from experienced local developers, American Land
Corporation, for an estimated $32 million, including performance incentives.
Construction was recently started and purchase is expected in the year 2000.
With the start of construction of these three properties, Smith
Residential will have eight projects totaling nearly 3,400 units under
construction or pre-purchase agreement in northern Virginia, Chicago,
southeast Florida, and Washington, D.C.
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 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 over 3,400 units under construction
or pre-purchase agreement, and manages an additional 3,500+ units for other
owners. The total market capitalization of Charles E. Smith Residential
Realty, including its Operating Partnership, is approximately $1.9 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
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Related links:
http://www.smithreit.com
CONTACT:
John Kurtz, media, 703-769-1153, or Greg
Samay, investors, 703-769-1029, both of Charles E. Smith
Residential Realty
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