ATLANTA, Oct. 17, 2013 /PRNewswire/ -- Roberts Realty
Investors, Inc. (NYSE MKT: RPI) announces that it has signed a
definitive agreement with the Fulton
County Board of Education to sell its 37,864 square foot
Northridge Office Building located in Sandy Springs, Georgia. The sales price
is $5.28 million and the closing is
scheduled to occur on or before October 30, 2013,
provided that the Board of Education may extend the closing date to
November 15, 2013. The Northridge Office Building has a
carrying value of $3.2 million in the
company's financial statements and secures a $2.4 million loan.
The company's primary objectives for 2013 have been to reduce
debt, decrease annual operating expenses, increase liquidity
through the sale of certain real estate assets and complete its
exit from the retail and office business. If the sale closes
as the company expects, the transactions completed in 2013 will
have reduced its total debt by $10.62
million or 43%, decreased its annual operating expenses by
$850,000 and increased its liquidity
by $5.6 million.
Mr. Charles S. Roberts, the
company's president and chief executive officer, stated:
"Completing our exit from the retail and office business during
2013 would allow us to focus exclusively on our primary business of
developing new, high-quality multifamily apartment
communities. We own four superb locations that are zoned and
entitled for the development and construction of 940 multifamily
apartment units."
Mr. Roberts continued: "Additionally, we continue to
pursue and work on strategic alternatives that would enhance
shareholder value through a sale or merger of the company.
The reduction in debt, decrease in annual operating expenses and
increased liquidity we have already accomplished in 2013 make the
company a more attractive merger candidate and make it easier to
obtain the financing necessary for the development and construction
of our new apartment communities. For these reasons, we
believe the company is well positioned for a productive and
successful 2014."
Roberts Realty Investors, Inc. is an equity real estate
investment trust based in Atlanta.
Forward Looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as
amended. Some of the forward-looking statements relate to our
intent, belief or expectations regarding our sale of the Northridge
Office Building, our plans to exit the retail and office business
and to obtain financing for our new apartment communities.
The statements regarding the sale of the Northridge Office Building
and our plans to exit the retail business involve risks and
uncertainties, including the occurrence, ultimate terms and timing
of these transactions. Our forward-looking statements
relating to obtaining financing for the construction of new
apartment communities involve risks and uncertainties regarding the
availability of the equity capital we need to obtain construction
financing and to the overall financing environment, specifically
the willingness of financing sources to make apartment construction
loans. Other forward-looking statements relate to our intent,
belief or expectations regarding our examination of strategic
alternatives. These statements involve risks and
uncertainties, including the occurrence, terms and timing of one or
more transactions or sales. For these forward-looking
statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. For more information about
other risks and uncertainties we face, please see the sections in
our most recent annual report on Form 10-K and our most recent
quarterly report on Form 10-Q entitled "Risk Factors."
SOURCE Roberts Realty Investors, Inc.