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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 2, 1999
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
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Maryland 54-1681657
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2345 Crystal Drive 22202
Crystal City, VA (Zip Code)
(Address of principal
executive offices)
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Registrant's telephone number including area code: (703) 920-8500
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Item 2. Property Acquisitions
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On July 2, 1999, 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 two-story apartment property
located in Palatine, Illinois ("Countryside"). Built in 1972, Countryside is a
720-unit property on 62 acres with 200 single-story garage spaces and additional
open surface parking. The total capitalized cost of $44.8 million consists of
178,191 units of the Operating Partnership ("Units") valued at approximately
$6.0 million, new mortgage debt of $28.0 million, initial capital improvement
costs of $1.2 million, and cash of $9.6 million. The mortgage debt obtained by
the Company is a 7-year interest-only note with an interest rate of 7.23%.
On July 2, 1999, the Company also acquired a three-story apartment property
located in Glendale Heights, Illinois ("Somerset"). Built in 1968, Somerset is
a 1,158-unit property on 55 acres with open surface parking. The total
capitalized cost of $57.6 million consists of 408,969 Units valued at
approximately $13.9 million, assumed mortgage debt of $32.7 million, initial
capital improvement costs of $1.2 million, a fair value adjustment to debt of
$0.5 million, and cash of $9.3 million. The assumed debt matures in 2007, and
has an effective rate of 8.31%.
On July 15, 1999, the Company acquired a nine-story apartment property
located in Washington, DC ("The Consulate"). Built in 1978, The Consulate is a
269-unit property on 2 acres with controlled-access underground parking. The
total capitalized cost of $32.7 million consists of assumed debt of $12.8
million, initial capital improvement costs of $0.5 million, and $19.4 million
of cash. The assumed debt matures in 2001 and has a rate of 7.375%.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(A) Pro Forma and historical financial information for Countryside, Somerset,
and The Consulate will be filed within 60 days of this report on Form 8-K.
(B) Exhibits
99.2 Press Release dated December 22, 1998 of the Company (Incorporated by
reference to Exhibit No. 99.1 of the Company's Form 8-K filed
February 12, 1999).
99.3 Press Release dated July 15, 1999 of the Company.
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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 26th day of
July 1999.
CHARLES E. SMITH RESIDENTIAL REALTY L.P.
By: 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)
/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
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EXHIBIT NO. EXHIBIT
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99.2 Press Release dated December 22, 1998 of the Company
(Incorporated by reference to Exhibit No. 99.1 of the Company's
Form 8-K filed February 12, 1999).
99.3 Press Release dated July 15, 1999 of the Company.
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EXHIBIT 99.3
[CHARLES E. SMITH RESIDENTIAL REALTY, INC. LOGO APPEARS HERE]
FOR IMMEDIATE RELEASE CONTACT:
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July 15, 1999 Media: John Kurtz
(703) 769-1153
Investors: Greg Samay
(703) 769-1029
CHARLES E. SMITH RESIDENTIAL ADDS TO UPSCALE URBAN
CONCENTRATION ON WASHINGTON'S CONNECTICUT AVENUE CORRIDOR
Acquisition brings Company's Ownership to 3,400 Units in Key Urban Submarket
ARLINGTON, VA -- Charles E. Smith Residential Realty, Inc. (NYSE:SRW), the
country's leading urban multifamily real estate investment trust, announced
today that it has acquired The Consulate, a 269-unit 9-story luxury high-rise
apartment property located in the prestigious Connecticut Avenue corridor in
northwest Washington, D.C. With this acquisition, Smith Residential now owns
3,400 apartment units in this premier urban submarket. The property was acquired
from a private partnership. Total transaction value is $33 million, including
up-front capital and transaction costs, which was funded with cash and the
assumption of $13 million of debt.
"This property is a perfect strategic fit with our portfolio and enhances
our position as leaders in upscale urban living," said John W. Guinee, Chief
Investment Officer for Charles E. Smith Residential. "The Connecticut Avenue
corridor is an excellent proven market for us, with occupancy better than 98%. A
combination of factors, including strong demand for apartments in the submarket,
significant constraints on new development, and excellent demographics makes
this one of the most attractive multifamily urban living submarkets in the
country."
The Consulate is located on Van Ness Street, one-half block from
Connecticut Avenue and the Van Ness Metrorail station. It is across the street
from another Smith Residential
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property, Van Ness South, and within two blocks of one of the company's new
development projects, the Park Connecticut, which is scheduled to open late this
year. The Consulate, built in 1978, underwent significant renovations in 1996-98
and is in excellent physical condition. Smith Residential will make minor
improvements to common areas. Amenities include a controlled-access underground
parking garage, a fitness center, an outdoor swimming pool and sun deck, and a
tennis court.
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 also provide a full range of real estate services to
other property owners. The Company owns a portfolio of approximately 22,000
apartment units, has over 4,000 units under construction and pre-purchase
agreement, and manages an additional 2,900+ units for other owners. The total
market capitalization of the Company -- Charles E. Smith Residential Realty,
including its Operating Partnership -- is approximately $2 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, which are based on assumptions about economic and market
conditions, competitive dynamics and other factors subject to a number of risks
and uncertainties, some of which are discussed in the Company's filings with the
Securities and Exchange Commission. Actual results could differ materially.
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