The company, through a joint venture, paid $108,516 per unit for the 100%-leased property but won't disclose the seller's name or the submarket where the asset is located.
"We're not trying to be secretive about this matter but the seller has asked us to withhold his corporate name until we can complete two other sales," Charles Bresler, co-chairman of Bresler & Reiner, tells GlobeSt.com.
Likewise, Bresler says his company prefers not to disclose the property's exact location at this time "because we don't want other investors to go rushing over there." He says the seller's identification and full details on all three property deals will be disclosed when the two pending deals are done.
"We have decided this could be a good time to return to the Central Florida (multifamily) marketplace," Bresler tells GlobeSt.com. "We are hearing there is renewed activity in this market."
The 364-unit property was purchased with a $34.12 million permanent, non-recourse mortgage. At settlement, $30.62 million was disbursed to the joint venture. Another $3.5 million will be disbursed when certain occupancy and debt service coverage goals are reached, Bresler says.
The remainder of the purchase price was paid from the JV's capital fund. Bresler & Reiner contributed $8.5 million for an 85% interest in the joint venture. An independent investor contributed $1.5 million for a 15% interest.
Bresler and Reiner operates in two principal areas--residential land development and construction, and rental ownership and management, primarily in metro Washington, DC. The company's stock is traded on the Over-the-Counter Bulletin Board.
In its last filing with the Securities and Exchange Commission for the three months ended March 31, the company reported revenue decreased 53% to $7.5 million. Net loss from continued operations totaled $228,000 versus an income of $1.9 million in the comparable 2002 period.
Results reflected decreased sales in the home and commercial rental segments, and higher general and administrative expenses, the company reported.
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