ARLINGTON, Va., Dec. 22 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), the nation's leading urban multifamily REIT,
announced today that it will acquire a 2,669-unit portfolio in Southeast
Florida from a partnership of institutional investors. The portfolio includes
eight high-rise buildings, four on the oceanfront and the others on the
intracoastal waterway. All are located in the Hollywood Beach/Aventura area.
The total investment will include approximately $178 million payable to
the seller, and an estimated $33 million in capital improvements planned over
the next two years. The transaction will be funded with proceeds from the
disposition of four multifamily assets and the Company's bank credit line.
Closing on three of the buildings occurred on December 21, 1999. Closing
on the remaining five buildings is expected to take place within 30 days.
Similar to Smith Residential's recent acquisition in South Miami Beach,
this portfolio represents another repositioning opportunity for the Company in
Southeast Florida. Value-adding upgrades planned include in-unit
washer/dryers, additional parking, kitchen/bath renovations, and window and
balcony modifications to improve views.
"This acquisition maintains the momentum of our urban living strategy and
geographic diversification program," said Ernest Gerardi, Jr., President of
Charles E. Smith Residential.
"One third of our approximately 24,000-unit portfolio is now in the key
growth markets of Chicago, Boston and Southeast Florida. In our targeted
market in Southeast Florida -- from Miami Beach north to Palm Beach -- we
have achieved critical mass with over 4,200 units. With this acquisition we
will own four of only eight rental multifamily buildings directly on the
oceanfront between Miami Beach and Ft. Lauderdale -- and three of the four
non-Smith-owned buildings are scheduled for condominium conversion."
John Guinee, Smith Residential's Chief Investment Officer, added, "This
acquisition takes advantage of a significant lifestyle transition occurring in
the urban/high-rise corridor east of I-95. The former largely retiree
population has changed to a broader demographic profile that is consistent
with our focus on urban living markets. The Southeast Florida market
continues to show strong, well-diversified employment growth, adding 60,000
jobs annually in wide-ranging fields, including international trade,
professional and financial services, health care, entertainment and tourism.
This growth has created a healthy rental market."
The acquired properties are all located near shopping and entertainment
venues including Aventura Mall, Bal Harbor Shops and the Turnberry Resort.
Five of the buildings in Hollywood Beach are within a short walk of the new
1,000+ room Diplomat Hotel and Convention Center, scheduled to open in the 4th
quarter of 2000, which will offer 50,000 square feet of high-end retail,
including a dozen restaurants. All of the properties feature large apartment
units, averaging over 1,000 square feet, as well as an extensive array of
amenities including swimming pools, tennis courts, fitness facilities and
business centers.
The four disposition properties, totaling 1,248 units, include Potomac
View, Windsor Towers and Columbian-Stratford in Northern Virginia and Fort
Chaplin in Washington, D.C., with total proceeds of approximately $71 million.
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange under the symbol "SRW."
The Company and its subsidiaries and affiliates own, acquire, develop, and
manage multifamily residential units in Washington, D.C., Northern Va.,
Chicago, Boston and Southeast Florida. The Company owns approximately 24,000
units and has approximately 3,000 units under pre-purchase and/or
construction. The total market capitalization of the Company -- Charles E.
Smith Residential Realty, Inc., including its Operating Partnership -- exceeds
$2.3 billion. Investor information, including press releases about Charles E.
Smith Residential Realty, is available on the Company's website at
http://www.charlesesmith.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
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.charlesesmith.com
CONTACT:
Investor: Chandler Spears, 703-769-1044 or
Susan Goyette, 703-769-6746, both of Charles E. Smith Residential
Realty, Inc.
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