SOURCE: Resource America, Inc.

August 07, 2008 17:01 ET

Resource America, Inc. Receives $18.4 Million Through Sale of Interests in the Evening Star Building

PHILADELPHIA, PA--(Marketwire - August 7, 2008) - Resource America, Inc. (NASDAQ: REXI) (the "Company" or "Resource") announced that it received net proceeds of approximately $18.4 million in connection with the substantial settlement of a discounted loan which was secured by a 15% interest in the Evening Star Building in Washington DC. KanAm Grund Kapitalanlagegesellschaft mbH ("KanAm Grund") on behalf of the KanAm US-grundinvest Fonds acquired the 15% interest. The Company retains a mezzanine note secured by a 5% interest in the property. The Company will recognize a pre-tax gain of approximately $7.5 million associated with this transaction in the quarter ending September 30, 2008.

The Evening Star Building is a 218,000 SF Class A office building located in Washington, DC. Resource originally invested in the Evening Star Building in 1998. In 2003, Resource facilitated the sale of an 80% interest to KanAm Grund and has continued to assist in the asset management of the property.

According to Alan Feldman, SVP of Resource America and CEO of Resource Real Estate ("RRE"), the Company's real estate operating company, "This transaction epitomizes our strategy of transitioning from an asset owner to a strategic asset manager while enabling the company to increase its return on invested capital. The value realized from the Evening Star Building demonstrates that even in very challenging markets like today's, a well-managed, blue chip asset located in a prime market will be well valued. We are very pleased with our partnership with KanAm Grund, and look forward to making even greater returns on our remaining 5% investment in the Evening Star Building."

"This asset has performed very well for us and it has been a great result for KanAm Grund to acquire an even greater stake in it. We look forward to continuing our successful relationship with Resource America," said Greg Moore and Manish Bhatia from KanAm Grund America LP, the wholly owned subsidiary of KanAm Grund which assisted in the buy-out.

"Simultaneous with the buy-out, KanAm Grund refinanced the property on a long term basis with a large German Bank, showing that even in the current capital market environment, capital is available for a trophy property backed by a reliable institutional sponsor such as KanAm Grund," said Olivier Catusse, General Manager with KanAm Grund in Frankfurt.

RRE owns and manages real estate investment vehicles on behalf of itself and for outside investors and operates the Company's commercial real estate debt platform. In total, RRE manages over $1.75 billion in assets under management as of June 30, 2008. RRE offers investment programs that acquire stable income-generating multifamily real estate assets throughout the U.S. in areas with solid demographic and real estate fundamentals that provide tax-advantaged cash flows to investors. RRE currently manages an apartment portfolio of more than 11,000 multifamily units representing 44 properties.

Resource America, Inc. is a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the commercial finance, real estate and financial fund management sectors. For more information please visit our website at www.resourceamerica.com or contact pkamdar@resourceamerica.com.

KanAm Grund Kapitalanlagegesellschaft mbH, headquartered in Frankfurt, Germany, was formed in May 2001 and is the first independent real estate investment company in the form of an open-ended real estate fund in Germany. It performs all of the functions of a special financial institution, including portfolio management and analysis, property acquisition, facility management, marketing, accounting and controlling. For more information, visit www.kanam-grund.de.

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