Contact Information: Contact: pkamdar@resourceamerica.com
Resource America, Inc. Announces the Completion of Resource Real Estate Investors 6, L.P.
| Source: Resource America, Inc.
PHILADELPHIA, PA--(Marketwire - May 20, 2008) - Resource America, Inc. (NASDAQ : REXI ) (the
"Company") announced today that its subsidiary, Resource Real Estate
("RRE"), has successfully completed the private offering of Resource Real
Estate Investors 6, L.P. ("R6" or the "Fund"). The Fund acquired eight
assets, with a gross value of $76 million, which include five equity
positions and three subordinated debt investments. The following is a list
of properties that R6 has acquired: Coach Lantern in Scarborough
(Portland), ME, Foxcroft in Scarborough (Portland), ME, Memorial Towers in
Houston, TX, Park Hill in San Antonio, TX and the Villas of Henderson Pass
in San Antonio, TX. The following is a list of the properties in which the
Fund purchased subordinated debt investments: Acacia Park in San
Bernardino, CA, the Hillwood Apartments in Montgomery, AL and Southern Cove
in Las Vegas, NV. This is RRE's eighth multifamily fund; to date RRE has
raised approximately $247 million in gross offering proceeds for its
multifamily programs which has purchased $577 million worth of multifamily
real estate assets.
RRE invests and manages real estate investments for its own account and
third party investors in five primary areas: (1) stable
income-generating multifamily properties; (2) real estate debt investments;
(3) value-added multifamily investments; (4) distressed real estate and (5)
Commercial Mortgage Backed Securities. In total, RRE manages over $1.7
billion in assets under management as of March 31, 2008.
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. 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 approximately 10,000 multifamily units representing 38
properties.
According to Alan F. Feldman, SVP of Resource America, Inc. and CEO of
Resource Real Estate, "We are seeing tremendous opportunities in the
marketplace to acquire multifamily properties as the credit crunch has
forced many highly leveraged buyers out of the market leaving fewer buyers
competing for multifamily acquisitions. Simultaneously, the U.S. subprime
mortgage crisis is expected to drive more Americans into rental properties.
We believe that R6 is a good example of how RRE can take advantage of some
of the dislocations in the marketplace caused by the ongoing credit crisis.
While RRE will maintain its focus on stabilized and value-added multifamily
properties and associated investment products, we are also looking towards
additional opportunistic real estate investments, including what appears to
be a growing opportunity to acquire distressed real estate throughout the
U.S."
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.
Certain matters discussed within this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Although Resource America, Inc. believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be
attained. Factors that could cause actual results to differ materially from
expectations include financial performance, regulatory changes, changes in
local or national economic conditions and other risks detailed from time to
time in the Company's reports filed with the SEC, including quarterly
reports on Form 10Q, reports on Form 8-K and annual reports on Form 10-K.