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| AMLI Residential Announces Joint Venture to Own and Develop Atlanta Apartment Community |
CHICAGO, July 6 /PRNewswire/ -- AMLI Residential (NYSE: AML) announces that on June 29, 2000, it entered into a joint venture with Prudential Real Estate Investors ("Prudential") to own Phase I of AMLI at Peachtree City in Fayette County, Georgia and to develop and own Phase II of the community. The joint venture is structured such that cash flow and sales proceeds will generally be shared 80% to Prudential and 20% to AMLI until certain economic benchmarks are achieved, at which point AMLI will receive an increased portion of the cash flow and residual interest. In connection with the formation of the joint venture on Phase I, AMLI will receive a cash distribution of approximately $23 million, as well as certain compensation for arranging the transaction. There is no mortgage financing on Phase I. The development of Phase II, which will begin later this month, will be partially financed by a $19.2 million construction loan provided by PNC Bank. The interim financing is expected to be repaid from capital contributions by the partners upon completion of the development. "We are pleased to announce another joint venture with Prudential," stated Brian Cranor, AMLI Senior Vice President. "This transaction is somewhat unusual for AMLI in that it combines a stabilized community with a second development phase. Our ability to structure and close this transaction is the direct result of our continuing positive relationship with Prudential." AMLI at Peachtree City-Phase I consists of 312 apartment homes set on a 26-acre site. The community is located in southwest Peachtree City, 25 miles south of Atlanta's Central Business District. AMLI completed and stabilized the community in May 1998. Phase I contains 305,756 rentable square feet in 15 buildings, with 172 one-bedroom, 86 two-bedroom and 54 three-bedroom apartment homes. The apartment homes average 980 square feet in size. The 22-acre Phase II will consist of 216 apartment homes containing 254,334 rentable square feet. Thirteen buildings will contain 68 one-bedroom, 112 two-bedroom and 36 three-bedroom apartment homes. Initial lease-up is expected to commence in the third quarter of 2001 with final construction and stabilization scheduled for the second quarter of 2002. The total project cost is estimated to be approximately $20.2 million. This transaction continues AMLI's declared strategy to selectively co-invest with institutional investors for the development, acquisition and management of Class A multifamily communities. By strategically leveraging the Company's equity through these alliances, AMLI believes the return on its investment will be significantly enhanced. AMLI will provide development, construction, leasing, and property and asset management services for AMLI at Peachtree City. The AMLI(R) portfolio currently includes 59 apartment communities containing 23,227 apartment homes, with an additional 3,734 apartment homes under development or in lease-up in 13 locations. AMLI Residential is focused on the development, acquisition and management of institutional quality multifamily communities in the Southeast, Southwest and Midwest areas of the U.S. AMLI Residential also serves as institutional advisor and asset manager for large pension funds, tax-exempt foundations and other financial institutions with respect to their multifamily investment activities. AMLI employs approximately 800 people who are dedicated to achieving AMLI's mission -- Provide An Outstanding Living Environment For Our Residents. AMLI press releases and other company information are available at AMLI's web site located at http://www.amli.com .SOURCE AMLI Residential
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Company News On-Call:
800-758-5804, ext. 116726
CONTACT:
Allan J. Sweet, President, 312-984-2602, or
Brian K. Cranor, Senior Vice President, 317-524-2504, both of
AMLI Residential
