Thursday, July 21, 2016

Presidential Realty Cuts Deal To Acquire First Capital Real Estate Trust

Presidential Realty Corp., an over the counter traded New York-based REIT, executed a letter of intent to acquire substantially all of the assets of First Capital Real Estate Trust in exchange for newly issued shares of Presidential.

"This transaction further advances our liquidity plan,” said Suneet Singal, CEO of First Capital.

The liquidity plan was outlined last month when Forum Partners, a London-based global real estate investment and asset management firm, agreed to make a capital infusion to First Capital Real Estate Investments LLC, sponsor of the non-traded REIT.

That agreement was structured in three phases. In the first phase, First Capital acquired the remaining interests in First Capital Real Estate Advisors formerly held by real estate investor Jacob Frydman for an undisclosed amount.

The second phase was to be this liquidation of First Capital Real Estate Trust.

And the next and final step is for Forum to expand First Capital Real Estate Investments’ assets under management.

First Capital Real Estate Trust currently owns the following properties:
Tilden House at 2520 Tilden Ave. in Brooklyn, New York, a 117-unit special shelter;
A 44,323-square-foot medical office building at 945 82nd Parkway Myrtle Beach, SC; and
A 90,070-square-foot office building at 7 Carnegie Plaza in Cherry Hill, NJ.

The price Presidential has agreed to pay for the assets was not disclosed.

Presidential Realty currently owns one property: Mapletree Industrial Center, a 393,488-square-foot facility in Palmer, Massachusetts.

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