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NEW YORK CITY-Tarragon Corp., based here, has contributed its interest in 14 rental apartments to Ansonia Apartments, an unconsolidated partnership that now has 23 complexes under its banner. It's part of Tarragon's strategy to dispose of substantially all of its real estate investment properties to focus on its core urban homebuilding business.

The 14 communities have a fair market value of $341 million and were exchanged for an additional interest in Ansonia. The transaction included $391 million of long-term, senior financing provided by GE Real Estate. The deal is one of the first mortgages originated under GE's new flexible fixed-rate product. The collateral for the loan is Ansonia's 5,631-unit portfolio of class A and B stabilized properties in Alabama, Connecticut, Florida, Georgia, Maryland, Tennessee and Texas, including Vintage at Madison Crossing.

Since 2003, GE has provided nearly $1 billion in financing to Tarragon. According to Ed Coco, GE managing director, Eastern region, North America debt, says the commitment has the potential to grow to as much as $1 billion. After repayment of $148 million in consolidated debt, the transaction's first phase will generate approximately $64 million in net cash proceeds for Tarragon. This distribution from Ansonia will produce approximately $60 million in pre-tax income for Tarragon. Smaller second and third phases of the Ansonia financing are expected to contribute additional earnings and cash proceeds in excess of $30 million over the next 90 days, according to Tarragon officials.