All going according to plan as Paragon makes latest purchase.Paragon Real Estate Equity and Investment Trust entered into an agreement to acquire for $64.7 million ten apartment complexes in Texas and Ohio, consisting of 1,478 units. The transaction is subject to the completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. over the next 60 days, Paragon's obtaining financing and other customary closing conditions. Paragon is exploring a variety of capital raising alternatives and expects that the acquisition will close in late 2005 or early 2006. Paragon's focus has been on buying value-added "C" class multifamily apartment properties and portfolios, and redeveloping the properties into "B+" quality. James C. Mastandrea, the CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Paragon, stated, "Because our value-added strategy requires investors to be patient and willing to wait for the income stream to grow, few public companies are operating within this segment of the real estate markets. "Important to this business strategy is to combine an experienced real estate development, operating and management team with investors who prefer the transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. of a public company and together, capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the intrinsic value Intrinsic Value 1. The value of a company or an asset based on an underlying perception of the value. 2. For call options, this is the difference between the underlying stock's price and the strike price. within the properties and portfolios." Mastandrea continued, "We believe that the portfolio we have under contract meets the requirements of our business plan. "After spending considerable time and resources over the course of the last year or more reviewing and ultimately deciding not to purchase more than 60 apartment complexes valued at $500 million and an affordable housing portfolio of over $1 billion invested in approximately 350 apartment communities, we believe we have found assets that will solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our platform and launch the growth of our company." |
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