RRI Offers Update on Status of Peachtree Parkway Sale with Lennar Multifamily Investors
Roberts Realty Investors, Inc. (NYSE: RPI) announces that the sale of its 20 acre Peachtree Parkway property to Lennar (NYSE: LEN) Multifamily Investors, LLC for a net sales price of $7,090,000 is scheduled to close on February 7, 2013. Lennar completed its due diligence on the Peachtree Parkway property on January 4, 2013 and in accordance with the terms of the sales contract its $300,000 earnest money deposit is now non-refundable.
We intend to use the $7,090,000 of sale proceeds to pay off our Peachtree Parkway land loan, which will significantly reduce the company's debt. The payoff of the Peachtree Parkway land loan will also release our North Springs property, which serves as $4,400,000 of additional collateral for the Peachtree Parkway land loan. The North Springs property is a 10-acre site located on Peachtree Dunwoody Road in Sandy Springs across from the North Springs commuter rail station that is zoned for 356 apartment units, 210,000 square feet of office space, and 56,000 square feet of retail space. The North Springs property has a book value of $11,000,000 and after the closing of the sale, the company will own the North Springs land on a free and clear basis, which will provide the company with additional financial flexibility and further growth opportunities.
In addition to the sale of the Peachtree Parkway property, we continue to work on various strategic alternatives to maximize shareholder value, including a possible merger or recapitalization of the company. The Peachtree Parkway sale enhances both our ability to complete a merger transaction and to raise new equity to grow the company through acquisitions of existing apartment communities and/or to build new apartments on our remaining land. We have had serious discussions with numerous companies regarding a merger or recapitalization of the company and remain in active discussions with several potential merger or equity partners. We continue to diligently pursue a definitive agreement with one of these companies on terms that are advantageous to our shareholders. Again, the Peachtree Parkway sale enhances these opportunities.
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