Smith Corporate Living Expands By Joining Forces With Chicago Corporate Furnished Apartments Leader
ARLINGTON, Va., June 4 /PRNewswire/ -- Charles E. Smith Residential Realty, Inc. (NYSE: SRW), one of the country's leading residential REITs, announced today that an affiliate of the company has acquired Presidential Villas, a Chicago-based operating company that is the largest operator of furnished corporate rental apartments in the Chicago area, for approximately $8.5 million. Charles E. Smith Residential's Smith Corporate Living division has a strong position in the fast-growing corporate apartment business and the acquisition of Presidential Villas will significantly enhance its ability to provide furnished apartments to corporate customers in the greater Chicago market.
Both Smith Corporate Living and Presidential Villas specialize in the
rental of fully-furnished, appointed and serviced apartments. Corporate furnished apartments provide an economical alternative to hotels for residents needing longer term, but not permanent, residential accommodations. Apartments are fully-furnished and accessorized, including dishes, linens, televisions and VCRs. In addition, a complete range of convenience services are available including house cleaning, linen service, health clubs, continental breakfasts, and transportation services in some locations.
Kevin M. Cross, Vice President of Smith Residential and the official responsible for Smith Corporate Living operations, commented: "This is an exciting and logical geographic expansion for Smith Corporate Living. Efficiencies realized through the merger of Presidential Villas and Smith will strengthen our collective ability to provide even better services for both
property owners and corporate apartment residents. The combination of Smith's financial stability, proactive sales concepts, and customer service procedures will help Presidential Villas to grow, and Presidential Villas' expertise in third-party operations will, in turn, benefit Smith Corporate Living in Chicago as well as other markets."
Presidential Villas will continue to operate under its own name, which has brand recognition in the Chicago area, and its management team will remain in place, including Lea Goldblatt as President. Ms. Goldblatt stated, "Presidential Villas will be made even better by the association with the Smith Corporate Living brand and Charles E.Smith Residential's corporate strength." Noel Goldblatt, founder and former Chairman of the Board of Presidential Villas, concurred, stating, "I fully endorse the merger and I am excited about the outstanding future growth opportunity it represents for Lea and the Presidential Villas organization."
Presidential Villas currently maintains approximately 1,100 apartments in 37 properties in the Chicago area, with 400 units in downtown Chicago and 700 units in the suburbs, ranging from efficiencies to two-bedroom units. The firm provides furnished apartments to business executives and professionals visiting the Chicago area on short-term assignments or training seminars, and temporary housing for individuals and families relocating to the region. Presidential Villas services also include arranging for the individual needs of its clients, such as transportation, computer requirements, and grocery services. Since its founding in 1968, Presidential Villas has enjoyed strong, steady growth, and the firm's client base includes a substantial number of Fortune 500 corporations.
Smith Corporate Living provides nearly 1,000 corporate apartments in luxury properties throughout the Washington D.C./Northern Virginia metropolitan area, including locations in the downtown area and the Connecticut Avenue corridor in northwest Washington D.C., and the Crystal City, Arlington, Tysons Corner, Reston and the Dulles Airport areas in Northern Virginia. Each property is owned and/or managed by Charles E. Smith Residential Realty, Inc., which is recognized for its commitment to a quality
living experience for residents of each of its apartment properties. Smith Corporate Living recently entered into a new partnership with HomeSolutions by Marriott to provide its residents with cleaning and linen services comparable with those offered by luxury hotels.
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 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.
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.
SOURCE Charles E. Smith Residential Realty, Inc.
/CONTACT: For Investors: Greg Samay, 703-769-1029; for Media: John Kurtz, 703-769-1153; both of Charles E. Smith/
/Company News On-Call: http://www.prnewswire.com or fax, 800-758-5804, ext. 101271/
/Web site: http://www.smithreit.com/
CO: Charles E. Smith Residential Realty, Inc.; Presidential Villas ST: Virginia IN: FIN RLT SU: TNM
AH -- DCTH059 -- 9902 06/04/98 17:31 EDT http://www.prnewswire.com
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|Date:||Jun 4, 1998|
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