Transcontinental Realty to enter into JV with NYSE financial institution
Transcontinental Realty Investors 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. 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."