Extends Company's Average Debt Maturity to 9.5 Years at Lower Rates
ARLINGTON, Va., Dec. 14 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), one of the country's leading multifamily real estate
investment trusts, announced today that it has arranged three long-term
secured non-recourse debt financings totaling $104.6 million with Freddie Mac,
through its Program Plus lender, Columbia National Real Estate Finance, Inc.
The financings have fixed coupon rates ranging from 6.29% to 6.45%, and terms
of eight and twelve years. Proceeds from the financings will be used to retire
$95.5 million of corporate bank debt and $9.1 million of property debt.
"We are extremely pleased to arrange such favorable rates and maturities
in today's credit environment," said Denny Minami, Chief Financial Officer of
Smith Residential. "These financings strengthen our balance sheet by lowering
our average interest rate and extending our average maturity -- and with the
repayment of the bank borrowings we will have more than $400 million in debt
capacity available to fund our strong development pipeline and acquisition
program. This transaction further illustrates the high level of confidence and
recognition by a major institutional lender in the quality of Smith
Residential's assets and strategy."
Two of the Freddie Mac financings have already closed, a $49.3 million
12-year loan at 6.45% and a $17.1 million eight year loan at 6.30%. Pricing
has been completed on the third, a $38.2 million 12-year loan at 6.29%, which
is expected to close by year end. The effect of these loans, together with the
recent closing of a $140 million 15-year loan at 6.75%, extends the average
maturity of Smith Residential's debt portfolio from 6.3 to 9.5 years and
reduces the company's average interest rate from 7.32% to 7.05%.
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, 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 Realty
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