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| AMLI Residential Announces December Transactions |
CHICAGO, Dec. 31 /PRNewswire-FirstCall/ -- AMLI Residential Properties Trust (NYSE: AML) announces acquisition, disposition and financing activity that closed this month. Yesterday AMLI acquired AMLI Knox-Henderson (formerly the Summit Belcourt) in Dallas, Texas, a 180-unit luxury apartment community set on 3.2 acres on Cole Avenue in the neighborhood of Knox/Travis. Built in 1994, AMLI Knox- Henderson contains 157,533 rentable square feet in one three-story building with 132 (73%) one-bedroom and 48 (27%) two-bedroom apartment homes. The average size of the apartment homes is 875 square feet. The community offers numerous amenities including a resort-style swimming pool, indoor heated spa, a state-of-the-art fitness center and a parking garage. Today AMLI acquired the 60% partnership interest that it did not already own in AMLI at Oak Bend, a 426-unit community in Lewisville (Dallas), Texas from the private investor group that, along with AMLI, acquired the community in 1999. On December 23, AMLI sold AMLI at Park Bridge in Alpharetta (Atlanta) Georgia, and on December 29 AMLI sold AMLI at Town Center and AMLI at Centennial Park in Overland Park (Kansas City), Kansas. AMLI at Park Bridge, a 352-unit community in which AMLI owned a 25% interest, was built in 2000 by AMLI in partnership with a large public pension plan. AMLI received approximately $8.1 million as its share of the net sales proceeds, in addition to a disposition fee of $132,000. The property, which was sold to the American Stable Value Fund, an institutional real estate investment fund managed by American Realty Advisors, generated an un-levered internal rate of return (as defined below) of approximately 15%. AMLI at Centennial Park, a 156-unit community, was acquired by AMLI in 1997, and AMLI at Towne Center, a 170-unit community, was acquired in 1998. Both communities were built in 1997 and were purchased in conjunction with AMLI's acquisition of the assets and operations of Trammell Crow Residential Midwest. AMLI at Centennial Park and AMLI at Towne Center were sold to Evergreen Development LLC, a private investment group based in Pasadena, California. AMLI received approximately $2,850,000 in cash at closing (before prorations), and took back a short-term purchase money mortgage of $28,530,000 due March 1, 2004. The un-levered internal rates of return (as defined below) for AMLI at Centennial Park and AMLI at Town Center were approximately 8% and 9.5%, respectively. "AMLI at Knox-Henderson represents our fourth purchase of an asset in an urban-infill location in the Dallas/Ft. Worth market in the past two years, helping us to continue to diversify our operations in our largest market," stated Allan Sweet, AMLI President. "We were able to acquire our partner's interest in AMLI at Oak Bend at a good price, while helping them meet their short-term needs." "From time to time it makes sense for us to sell a newer community, like AMLI at Park Bridge, when there is such strong investor interest in our assets," continued Mr. Sweet. "We are obviously very pleased with the results of the sale for both our partner and for ourselves. The sale of the two assets in Kansas City is more representative of our core disposition strategy, which is to sell older assets in our portfolio and reinvest the proceeds into newer investments having the potential for better internal rates of return, like AMLI at Knox-Henderson." Also during the month, the partnership that owns AMLI at Seven Bridges, a 520-unit newly developed community in Woodridge (Chicago), Illinois, paid off its $50 million construction loan through the closing of a $51 million, seven- year, first mortgage permanent loan with Teachers Insurance and Annuity Association. The principal terms of the permanent loan, which had been agreed to some time ago as a forward commitment, provide for an interest rate of 7.25% and payments of interest only for 36 months followed by monthly amortization based on a 30-year schedule. AMLI's ownership interest in AMLI at Seven Bridges is 20%. AMLI also closed $20 million of additional mortgage financing on AMLI at Danada Farms, a 600-unit community in Wheaton (Chicago), Illinois that became wholly-owned by AMLI during the quarter. The loan, which is with The Prudential Insurance Company of America, the property's existing mortgage lender, provides for payments of interest only at the rate of 4.48% until March 1, 2007, the maturity date of the current first mortgage. Finally, AMLI paid off approximately $29 million of the maturing mortgages encumbering two wholly-owned communities, AMLI at Regents Crest and AMLI at Verandah. The principal components of the methodology used to calculate the internal rates of return noted above are as follows: (i) all reported numbers are based on "free and clear," unlevered results from the real estate only; (ii) any acquisition, disposition, asset management fees or the like otherwise earned by AMLI from a joint venture are not included in the calculation; (iii) property operations are adjusted, if required, to reflect a standard pro forma property management fee of 3.5% of total property revenues; and (iv) the initial cost basis for all properties developed by AMLI are adjusted, if required, to include a standard pro forma 3% development fee and a 5% general contractor fee. The AMLI(R) portfolio currently includes 71 apartment communities containing 27,407 apartment homes, with an additional 1,817 apartment homes under development or in lease-up in five locations. AMLI is focused on the development, acquisition and management of institutional quality multifamily communities in the Southeast, Southwest, Midwest and Mountain regions 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 through AMLI's co-investment business. AMLI employs approximately 850 people who are dedicated to achieving AMLI's mission-- Provide An Outstanding Living Environment For Our Residents. More information on AMLI is available at http://www.amli.com .SOURCE AMLI Residential Properties Trust
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CONTACT:
Allan J. Sweet, President, +1-312-984-2602,
or Robert J. Chapman, CFO, +1-312-984-6845, both of AMLI
Residential Properties Trust
