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CONTACT:
Robert Dominy
PRG Real Estate Management, Inc.
2701 E. Luzerne Street
Philadelphia, PA 19137
Phone: 215.744.1200
(Fax): 215.744.4042
DATE:
April 19, 2002
HEADLINE: PRG ACQUIRES RALEIGH'S
HONEYTREE APARTMENTS
Philadelphia based PRG Real Estate Management, Inc. acquired
the 92 unit Honeytree Apartments on April 4, 2002 . The community
was purchased for $2.7 million, or $28,913, and it was acquired
at a cap rate of 10.4%.
Honeytree in its present condition is considered
a class C property. However, as is consistent with company
investment philosophy, PRG intends to spend over $350,000
in order to reposition the property. Plans include the installation
of new roofs, a complete residing of the exterior, renovation
of the leasing center and laundry facilities, and the addition
of a substantial amount of landscaping. PRG also anticipates
the installation of a new swimming pool deck, resurfacing
the pool itself, and adding decorative fencing around the
pool area. Further, all road surfaces will be repaired and
sealed, and the tennis court is, Scheduled to be resurfaced.
Honeytree is situated on the North side
of Raleigh , and is conveniently located within two miles
of the beltway. While at the time of acquisition Honeytree
vacancies were somewhat high at the property, the neighborhood
is considered favorable, and the occupancy rates are rising.
Also, PRG specializes in turn around opportunities, and it
is expected that occupancy will rise substantially once the
capital improvement program has been complete.
PRG also intends to remake the image of
the community. As a first step toward this goal, the community
will be renamed the St. James Place Apartments, taken from
the street which it is situated on. New marketing materials
will be prepared to support the new name and image.
PRG owns and manages over 5000 units
along the Eastern Seaboard, from Pennsylvania to, Florida.
The addition of Honeytree increases the PRG portfolio up to
20 communities, and Honeytree is the second asset which PRG
owns in Raleigh. PRG has now acquired a total of twelve properties
within the past three and a half years, and continues to see
assets in need of repositioning in various markets throughout
the Southeast and Mid-Atlantic.
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