MuniMae Acquires a $3.4 Million Tax-Exempt Instrument.
MuniMae originates, invests in and services tax-exempt multifamily housing bonds. Since beginning its recent bond acquisition program, MuniMae has acquired, or committed to acquire, 12 tax-exempt bonds, or bond related investments, totaling over $84.9 million.
MuniMae acquired a $3.4 million junior interest in a trust relating to a $10,080,000 tax-exempt mortgage revenue bond issued by Newport News Redevelopment and Housing Authority.
The bond is collateralized by the 296-unit apartment property known as Indian Lakes Apartments, located in Virginia Beach, Va. The property consists of two-story garden style and townhouse units with a clubhouse and several outdoor amenities.
Mark Joseph, chairman and CEO of MuniMae, expanded, "Through this transaction, we have fixed our return at approximately 10.5% over the life of this investment. MuniMae's ability to access these types of transactions enables us to expand our business by identifying niche market opportunities."
MuniMae has assets of approximately $227 million, consisting primarily of participating tax-exempt bonds, most of which provide for MuniMae to participate in the appreciation of the underlying apartments on a tax-exempt basis.
The properties which back MuniMae's portfolio are located in 11 states and contain approximately 8,252 units with an average occupancy of 95%.
MuniMae is organized as a limited liability company which provides for tax advantages as well as the benefit of corporate governance. MuniMae, like Real Estate Investment Trusts (REITs), is exempt from tax at the corporate level.
In addition, the company passes through to its shareholders primarily tax-exempt dividends which are generated by its municipal bond investments. Dividends to growth, or common, shareholders are declared and paid quarterly.
MuniMae: Tax-Exempt dividends and equity growth through real estate. -0-
This press release contains statements which are forward-looking in nature and reflect management's current views with respect to future events and financial performance. These statements are subject to many uncertainties and risks and should not be considered guarantees of future performance.
Actual results may vary materially from projected results based upon a number of factors, including the actual performance of the property pledged as collateral for this investment, general conditions in the local real estate market in which this property is located and prevailing interest rates.
CONTACT: Municipal Mortgage and Equity, L.L.C.
Mark K. Joseph, chairman and CEO
Derek K. Cole, director, investor relations, 888/788-3863
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|Date:||Jul 3, 1997|
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