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Home Properties Optimistic About Its Future

ROCHESTER, NY-Home Properties reports that it has received "an excellent response" from potential buyers for properties the company is seeking to dispose of that are valued in the $100-million to $200-million range.

By John Jordan | Updated on April 27, 2001

ROCHESTER, NY-Officials with multifamily development firm Home Properties here say they are optimistic about the company’s future growth and report an excellent response from potential buyers for between $100 million to $200 million in properties the company wishes to sell.

Company officials attribute the positive response to the availability of high loan to value and low interest rate financing. The anticipated average cap rate is projected to be approximately 9% (before a reserve for capital expenditures), which exceeds management’s expectations when it initially announced this sale/reinvestment program. The first closing is expected to occur at the end of the second quarter or early in the third quarter.

Home Properties chairman and co-chief executive officer Norman Leenhouts says, “We have had an excellent response from the market… at prices well above our undepreciated historical cost. This is true even though the properties are located in markets having the least potential for future growth relative to our remaining portfolio.”

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