Home Properties completes 1031 exchange.MARLBOROUGH, MA: Home Properties Home Properties (NYSE: HME) is a real estate investment trust (REIT) that owns and manages apartments and apartment properties in the Midwest, New England, Mid-Atlantic and Southeast Florida. It manages or owns over 47,000 apartments. , Inc.announced that it purchased two apartment communities, Windsor Heights and Windsor Meadows, in Marlborough, Massachusetts Marlborough is a city in Middlesex County, Massachusetts, United States. The population was 36,255 at the 2000 census. The name of this town is sometimes spelled as Marlboro, rather than Marlborough, which is the official spelling. with a total of 612 units for $83 million. The properties under Home Properties' ownership are now named The Heights at Marlborough and The Meadows at Marlborough, respectively. The properties were purchased from an affiliate of The General Investment & Development Companies. Including these two acquisitions, Home Properties owns a total of seven properties with 2,143 units in the Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New suburbs. These two purchases, together with other recent acquisitions, will be used to complete a 1031 exchange in connection with certain of the Southeast Michigan Southeast Michigan, also called Southeastern Michigan, is a region in the Lower Peninsula of the U.S. state of Michigan that is home to a majority of the state's businesses and industries, and is home to slightly over half the state's population. properties that, as previously announced, were sold on June 29, 2006. Approximately $41 million of Michigan sale proceeds, which have been held in escrow by the qualified intermediary since June 29, 2006, will be released upon completion of the exchange. The company expects to use the proceeds to pay down its line of credit. In completing the 1031 exchange, the company fulfills its obligations to the former owners of the Southeast Michigan properties to preserve the tax deferral tax deferral The delay of a tax liability until a future date. For example, an IRA may result in a tax deferral on the amount contributed to the IRA and on any income earned on funds in the IRA until withdrawals are made. achieved when they originally contributed their properties to the Company. The Heights at Marlborough (348 units) was purchased for $48.9 million, including closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, , which equates to approximately $140,500 per unit. Consideration included the assumption of $22 million in fixed mortgage debt. The Meadows at Marlborough (264 units) is located approximately two and one-half miles from The Heights. The total purchase price of $34.4 million equates to approximately $130,200 per unit. |
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