Resource America, Inc. Receives $18.4 Million Through Sale of Interests in the Evening Star Building
PHILADELPHIA, PA--(Marketwire - August 7, 2008) - Resource America, Inc. (NASDAQ: REXI) (the
"Company" or "Resource") announced that it received net proceeds of
approximately $18.4 million in connection with the substantial settlement
of a discounted loan which was secured by a 15% interest in the Evening
Star Building in Washington DC. KanAm Grund Kapitalanlagegesellschaft mbH
("KanAm Grund") on behalf of the KanAm US-grundinvest Fonds acquired the
15% interest. The Company retains a mezzanine note secured by a 5%
interest in the property. The Company will recognize a pre-tax gain of
approximately $7.5 million associated with this transaction in the quarter
ending September 30, 2008.
The Evening Star Building is a 218,000 SF Class A office building located
in Washington, DC. Resource originally invested in the Evening Star
Building in 1998. In 2003, Resource facilitated the sale of an 80%
interest to KanAm Grund and has continued to assist in the asset management
of the property.
According to Alan Feldman, SVP of Resource America and CEO of Resource Real
Estate ("RRE"), the Company's real estate operating company, "This
transaction epitomizes our strategy of transitioning from an asset owner to
a strategic asset manager while enabling the company to increase its return
on invested capital. The value realized from the Evening Star Building
demonstrates that even in very challenging markets like today's, a
well-managed, blue chip asset located in a prime market will be well
valued. We are very pleased with our partnership with KanAm Grund, and
look forward to making even greater returns on our remaining 5% investment
in the Evening Star Building."
"This asset has performed very well for us and it has been a great result
for KanAm Grund to acquire an even greater stake in it. We look forward to
continuing our successful relationship with Resource America," said Greg
Moore and Manish Bhatia from KanAm Grund America LP, the wholly owned
subsidiary of KanAm Grund which assisted in the buy-out.
"Simultaneous with the buy-out, KanAm Grund refinanced the property on a
long term basis with a large German Bank, showing that even in the current
capital market environment, capital is available for a trophy property
backed by a reliable institutional sponsor such as KanAm Grund," said
Olivier Catusse, General Manager with KanAm Grund in Frankfurt.
RRE owns and manages real estate investment vehicles on behalf of itself
and for outside investors and operates the Company's commercial real estate
debt platform. In total, RRE manages over $1.75 billion in assets under
management as of June 30, 2008. RRE offers investment programs that
acquire stable income-generating multifamily real estate assets throughout
the U.S. in areas with solid demographic and real estate fundamentals that
provide tax-advantaged cash flows to investors. RRE currently manages an
apartment portfolio of more than 11,000 multifamily units representing 44
properties.
Resource America, Inc. is a specialized asset management company that uses
industry specific expertise to generate and administer investment
opportunities for its own account and for outside investors in the
commercial finance, real estate and financial fund management sectors. For
more information please visit our website at www.resourceamerica.com or
contact pkamdar@resourceamerica.com.
KanAm Grund Kapitalanlagegesellschaft mbH, headquartered in Frankfurt,
Germany, was formed in May 2001 and is the first independent real estate
investment company in the form of an open-ended real estate fund in
Germany. It performs all of the functions of a special financial
institution, including portfolio management and analysis, property
acquisition, facility management, marketing, accounting and controlling.
For more information, visit www.kanam-grund.de.