Transcontinental Realty Investors Inc. Announces Two Major Strategic Initiatives
June 14 2018 - 11:46AM
Business Wire
Transcontinental Realty Investors Inc., (NYSE: TCI)
announces it has executed the appropriate documents associated with
two proposed major transactions. The Dallas-based real estate
investment company is planning on entering into a strategic Joint
Venture, and in an unrelated transaction plans to sell its 4 major
commercial buildings.
Transcontinental Realty Investors has entered into a Joint
Venture with a major New York Stock Exchange financial institution.
This joint venture agreement conveys existing multifamily assets as
well as projects under development to a newly-formed entity called
Victory Abode Apartments, LLC. The assets involved include 41
existing properties and 12 properties under development
encompassing 8,082 apartment units, with the rights to jointly
develop 23 additional projects. (There are currently 28 projects in
TCI’s pipeline.) The appropriate request has now been submitted to
HUD and will likely be finalized this summer, pending formal
approval.
Transcontinental’s second major strategic transaction of the
year is the planned sale of its 4 commercial office buildings to a
private company with significant real estate holdings. A formal
contract has been executed and is subsequent to due diligence;
however TCI has ascertained reasonable assurances that the
purchaser has both significant real estate expertise and has the
appropriate financial backing to complete the transaction.
The sale of these four commercial assets is tied to the NOI
calculation at the end of the approximately 45 day due diligence
period. Given our previously announced increase in occupancy, TCI
is confident that the asset values will remain attractive to all
parties.
“I believe both of these initiatives further demonstrate our
ability to enhance shareholder value, aligned with the strategic
direction we announced two years ago,” commented Daniel J. Moos,
TCI’s President and CEO. “Our company has been dramatically
transformed to a highly viable operating company with solid
development capabilities in the Multi-Family arena.”
It is Transcontinental Realty Investors’ goal to successfully
close both of these transactions and to continue to invest in and
expand its Multi-Family Portfolio.
Transcontinental Realty Investors maintains a strong emphasis on
creating greater shareholder value through acquisition, financing,
operation, developing, and sale of real estate across every
geographic region in the United States. A New York Stock Exchange
company, Transcontinental is traded under the symbol "TCI".
Transcontinental produces revenue through the professional
management of apartments, office buildings, warehouses, and retail
centers that are "undervalued" or "underperforming" at the time of
acquisition. Value is added under Transcontinental ownership, and
the properties are repositioned into higher classifications through
physical improvements and improved management. Transcontinental
also develops new properties, such as luxury apartment homes
principally on land it owns or acquires.
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version on businesswire.com: https://www.businesswire.com/news/home/20180614005813/en/
On behalf of Transcontinental Realty Investors Inc.Chris
Childress, 469-522-4275
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