NWJ Companies Signs Agreement to Purchase Wilshire Enterprises
* Nearly 1,000 apartment units and 200,000 s.f. of office and
retail space in four states
* Company poised for tremendous growth in turbulent
real estate market
* Executes complex public to private REIT transaction
NEW YORK, June 18, 2008 (PRIME NEWSWIRE) -- NWJ Companies, Inc. (www.nwjcompanies.com) announced an agreement today to purchase Wilshire Enterprises (AMEX:WOC), a Newark headquartered real estate company with assets including nearly 1,000 apartment units and more than 200,000 square feet of commercial and retail space. The total transaction is valued at $76 million, including cash to shareholders, the payoff and refinancing of company debt and payment of transaction costs.
The transaction is expected to close as soon as possible following the approval of the transaction by Wilshire's shareholders, at which time the Company will take Wilshire from a publicly-traded company to a private REIT structure. When closed, NWJ Companies will grow to nearly 5,000 apartment units and will be poised to continue growing in the coming year.
"This is a tremendous opportunity for our company and it represents our strategy of moving toward buying larger portfolios and real estate companies," stated Nickolas W. Jekogian, President and Chief Executive Officer of NWJ Companies. "This deal demonstrates our strength in being able to finance large transactions. I have to credit our team for being able to raise this much equity and debt against the backdrop of one of the worst capital markets in recent history."
From a structural standpoint, the conversion to a private REIT is a complex transaction, revealing NWJ's technical expertise. Mr. Jekogian noted that the new private REIT structure will be used to purchase additional portfolios and can be beneficial to those sellers from a tax perspective.
Olympus Capital Group acted as the investment advisor for NWJ Companies in the transaction and is now focusing on additional portfolio opportunities for NWJ. "The Wilshire deal was a multifaceted transaction and one that will allow NWJ to focus on larger acquisition targets," noted Olympus' Managing Director, Eric S. Kretschman. "NWJ has a very effective and disciplined investment model for buying individual B-class apartment assets and it is now expanding that model into larger portfolios and whole-company transactions."
Regarding the Wilshire assets, Mr. Jekogian said, "The apartment assets are in very good condition, fully occupied and well-managed. We plan to implement a modest upgrade package in each of the units as they become vacant, and overlay our Signature Community brand on each of the properties." Signature Community is an amenity package and management style which focuses on treating the residents as true customers and offering hotel-style amenities at no additional cost.
Advisors
Olympus Capital Group acted as the investment advisor and portfolio strategist to NWJ Companies and Friedman Billings & Ramsey acted as investment banker to Wilshire.
About NWJ Companies, Inc.
NWJ Companies, Inc. (www.nwjcompanies.com) is a privately owned multi-family real estate investment and redevelopment organization that owns approximately 4,000 units in 18 markets nationwide. Through its Signature Community brand (www.asignaturecommunity.com), properties are designed and managed with a focus on customer service, including building amenities and special incentive programs for residents. Signature Community holdings are located in the Mid-Atlantic, Midwest and Western regions of the United States. The Company was founded in 1991 by Nickolas W. Jekogian III.
About Olympus Capital Group, LLC
Olympus Capital Group, LLC, is a New York-based investment advisory firm specializing in multi-family real estate. Olympus (OCG) represents NWJ Companies in the purchase of real estate portfolios and real estate-related companies. OCG is backed by a group of investors, affiliates and real estate professionals who together bring decades of real estate experience to the process of closing large and complex property transactions.
About Wilshire Enterprises, Inc.
Wilshire Enterprises, Inc. is an American Stock Exchange listed corporation engaged in the acquisition, ownership and management of real estate properties in Arizona, Florida, New Jersey and Texas.
The NWJ Companies, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=5179