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Roberts Realty Investors, Inc.
RPI announces that the sale of its 20 acre Peachtree Parkway property to
Lennar
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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