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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 1, 1998
CHARLES E. SMITH RESIDENTIAL REALTY L.P.
(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER: 1934 ACT FILE NUMBER: 0-25968
DELAWARE 54-1681657
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2345 CRYSTAL DRIVE
CRYSTAL CITY, VA 22202
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number including area code: (703) 920-8500
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Item 2. Property Acquisitions
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On July 1, 1998, Charles E. Smith Residential Realty L.P. ("the Operating
Partnership"), of which Charles E. Smith Residential Realty, Inc. ("the
Company") is the sole general partner, acquired a newly-constructed, 281 unit,
luxury mid-rise apartment property located in Waltham, Massachusetts ("Cronin's
Landing"). The total capitalized cost of approximately $62.4 million consisted
of 92,793 limited partnership units of the Operating Partnership valued at $3
million, assumed debt of $31.5 million, a fair value adjustment to debt of $1.1
million and $26.8 million in cash drawn from the Operating Partnership's line of
credit facility. The initial 60 apartment units were completed in January 1998.
As of July 1, 1998, all 281 apartment units had been completed and delivered and
approximately 71% of the total 281 units had been leased. The Cronin's Landing
property also includes 25,000 square feet of commercial space as well as an
underground garage and surface parking.
2
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, as amended, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, hereunto duly authorized, on this 15th day of
July 1998.
CHARLES E. SMITH RESIDENTIAL REALTY L.P.
By: /s/ Charles E. Smith Residential Realty, Inc.,
its General Partner
By: /s/ W. D. Minami
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W. D. Minami
Senior Vice President and Chief Financial Officer
of Charles E. Smith Residential Realty, Inc. (on
behalf of the Registrant and as Principal
Financial Officer)
By: /s/ Steven E. Gulley
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Steven E. Gulley
Vice President and Chief Accounting Officer
of Charles E. Smith Residential Realty, Inc.
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EXHIBIT INDEX
EXHIBIT NO. EXHIBIT
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99.1 Press Release dated May 19, 1998 of the Company
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[LOGO OF CHARLES E. SMITH]
NEWS RELEASE
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
FOR IMMEDIATE RELEASE Contact: Investors - Greg Samay
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May 19, 1998 (703) 769-1029
Media - John Kurtz
(703) 769-1153
CHARLES E. SMITH RESIDENTIAL TO ACQUIRE PREMIER NEWLY-
CONSTRUCTED PROPERTY IN BOSTON FOR $60 MILLION
281-Unit Luxury Mid-Rise On Charles River
ARLINGTON, VA. -- Charles E. Smith Residential Realty, Inc. (NYSE:SRW)
announced today that it has contracted to acquire Cronin's Landing, a newly-
constructed 281 unit luxury mid-rise property located along the Charles River in
Waltham, a close-in western suburb of Boston, for $60 million. Construction of
the property is nearly complete and it is currently being leased. Closing is
expected within 60 days.
Ernest Gerardi, Jr., President of Charles E. Smith Residential, said, "We are
excited to add this exceptional property to our portfolio. It more than doubles
our investment in the Boston area and is a significant step toward our goal of
building visibility and critical mass in this strong market. The developer of
Cronin's Landing, Roy MacDowell, has created a one-of-a kind living environment,
and we believe it will continue to be the highest quality apartment property in
the Boston area for a long time. Its location is excellent, just off Route 128
in the midst of the growing technology industry, and its setting along the
Charles River is spectacular. Boston is a difficult market in which to develop,
so having the finest new property in the market is a real competitive
advantage."
Cronin's Landing has 850 feet of frontage along the Charles River and is
designed with three wings of five to seven stories, so that a majority of units
have river views. The exterior is brick and cast stone and features terraces,
balconies and bay windows. The property includes 25,000 square feet of
commercial space, a 418-space parking garage and 72 surface parking spaces.
(more)
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Construction of the property is nearing completion, and as of May 15, 1998, 60%
of the units had already been leased.
Cronin's Landing is well located with excellent transportation access to
nearby Route 128/I-95, as well as downtown Boston via the Massachusetts
Turnpike. An MBTA commuter rail station is a short walk, just across the
Charles River bridge, and there are a wide array of restaurants, services, and
entertainment options within close proximity to the property. Located in the
midst of the Boston area technology industry, Waltham is experiencing strong
growth and revitalization, and has the third largest concentration of commercial
space in the area after downtown Boston and Cambridge.
The $60 million acquisition price for the property includes the assumption
of $31.5 million of debt, the issuance of $3 million of Operating Partnership
units, and the balance in cash. This transaction will bring the year to date
total of acquisitions by Charles E. Smith Residential Realty to 1,942 apartment
units, representing a total investment of over $180 million.
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange (SRW). The Company and
its subsidiaries and affiliates own, acquire, develop, and manage multi-family
residential properties; and in addition, provide a full range of real estate
services to other property owners. The Company owns a portfolio of over 19,500
apartment units, has 2,000 units under construction, and manages an additional
3,500+ units for other owners. The total market capitalization of the Company --
Charles E. Smith Residential Realty, including its Operating Partnership -- is
approximately $1.8 billion. Investor information including press releases about
Charles E. Smith Residential Realty is available on the Company's Web site at:
HTTP://WWW.SMITHREIT.COM, and also through PR Newswire "News on Call" by fax
800-758-5804, ext. 101271, or at: HTTP://WWW.PRNEWSWIRE.COM.
This news release contains forward-looking statements regarding the Company's
outlook, including statements of goals, intentions, and expectations regarding
or based on assumptions about general economic and market conditions,
competitive dynamics and other factors that, by their nature, are subject to
significant uncertainties, some of which are discussed in the Company's filings
with the Securities and Exchange Commission. Because of these uncertainties,
and the assumptions on which statements in this release are based, actual future
results may differ materially.
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