Roberts Realty Investors, Inc. Announces Completion of
Construction and Commitment to Refinance Its Charlotte Apartment Community
ATLANTA, July 27 /PRNewswire-FirstCall/ -- Roberts Realty Investors, Inc. (AMEX:RPI) announces it has signed a $23,000,000 loan commitment to refinance
its Charlotte apartment community for ten years at a fixed interest rate of
6.06%. Federal Home Loan Mortgage Corporation ("Freddie Mac") will provide the
financing, and Mr. Faron Thompson of Primary Capital acted as the mortgage
broker. The company expects to close the loan in July 2005. Mr. Charles S. Roberts, the company's CEO, stated: "This new loan replaces our existing
$24,000,000 construction loan and gives us excellent long-term financing for
our Charlotte property. Equally important, this commitment protects us against
the possibility of interest rates moving significantly higher in 2005." The Charlotte community is located on a 23-acre site in the Town Center of
Ballantyne, a 2,000-acre master planned community. The 319-unit community
consists of one, two, three, and four bedroom garden apartments representing a
total cost of approximately $30 million. The company has received all
certificates of occupancy with only landscape installation, top paving, and
punch list work remaining to be completed.
The property has opened for leasing and to date has leased 50 apartments. Mr. Roberts added: "Leasing is progressing well, especially given that residents
are occupying their apartments during final construction and landscape
installation." Upon completing the leasing and refinancing, the property is
expected to increase the company's cash flow by approximately $600,000 per year
or $0.08 per share beginning in the third quarter of 2005.
This press release contains forward-looking statements within the meaning of
the securities laws. Although the company believes the expectations reflected
in the forward-looking statements are based on reasonable assumptions, the
company's actual results could differ materially from those anticipated in the
forward-looking statements. Certain factors that might cause such a difference
include, but are not limited to: we may fail to close the refinancing as we
anticipate due to, among other things, the occurrence of a material adverse
change in the condition of the property, or the failure of the property's
occupancy rates and rents to meet the minimum requirements described in the
loan commitment; the property's performance may suffer from unfavorable changes
in market conditions, perhaps as a result of war or terrorism; the property's
lease-up period may be longer than we anticipate; and we face increased
competition from other similar apartment communities in the market area. DATASOURCE: Roberts Realty Investors, Inc.
CONTACT: Greg M. Burnett, Chief Financial Officer of Roberts Realty Investors, Inc., +1-770-394-6000, or Fax, +1-770-551-5914
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