Roberts Realty Investors close $60M Deal

July 10, 2008 09:21 AM
Appen Newspapers

JOHNS CREEK – Roberts Realty Investors closed the sale of its 403-unit AddisonPlace apartment community for $60 million. Though shareholders and unitholders will receive 66 cents per share/unit, that's a far cry from the $2.50 announced in January and April press releases. The company blames the weakness in the U.S. economy and the continued stress in the banking system."Despite the aggressive actions taken by the Federal Reserve during the past year, the economy continues to struggle and credit is still difficult to obtain," said Charles R. Elliott, company CFO. "In this weak and uncertain economy with no improvement in sight, our priority is to prudently manage our balance sheet for maximum liquidity."

The distribution will be paid Aug. 5 to shareholders and unitholders of record on July 10.The sales price is equal to $148,883 per apartment unit or $102 per square foot and resulted in net cash proceeds of approximately $29.3 million to the company. The buyer was not disclosed.Addison Place is in Johns Creek and consists of 118 townhomes and 285 garden apartments. The first phase of Addison Place consisting of 118 townhomes was completed in 1999 and the second phase of 285 garden apartments was completed in 2001.

Addison Place was designed, developed, and constructed by Roberts Properties Inc., a non-owned affiliate of the company.Charles S. Roberts, the company's founder and CEO, said: "Since 1994, our investment strategy has been to buy well-located land in high-growth neighborhoods and then develop, construct, and manage these high-quality apartment communities."

Elliott said they believe the best way to create shareholder value is to periodically sell its apartment communities to make distributions to shareholders from the proceeds.The company has paid dividends and distributions totaling $8.84 per share/unit since 1996. In 2003, Roberts Realty Investors sold its Highland Park apartment community and paid a distribution of ¢55 cents per share/unit. In 2004, the company sold a portfolio of five apartment communities and paid a distribution of $4.50 per share/unit.With Addison Place distribution payments, the company will have paid dividends and distributions totaling $9.50 per share/unit since 1996, which is equal to an average of 73 cents per share/unit per year for each of the past 13 years.

The company moves forward with development and construction of apartment communities in Forsyth County and in Sandy Springs totaling 374 residential units.Sawmill Village is a 22-acre site that is zoned for 154 residential units. The property is located at the intersection of Ga. 9 and Old Atlanta Road in Forsyth County, an area that is experiencing rapid growth. This community will be similar in size to Rosewood Plantation and Ivey Brook, two other 150-unit communities the company previously developed and sold for a substantial return.The company's Northridge property is an 11-acre site located in Sandy Springs, and is adjacent to its Northridge office building.This property is zoned for mixed-use and will include 220 residential units consisting of one- and two-bedroom homes along with covered parking for the residents.