SOURCE: Tarragon Corporation

January 03, 2008 15:02 ET

Tarragon Sells Six Properties for $156 Million

NEW YORK, NY--(Marketwire - January 3, 2008) - Tarragon Corporation (NASDAQ: TARR), a leading mixed-use developer with a focus on for rent and for sale multifamily housing, today announced that it has sold, for $156 million, its interest in six properties located in Florida and South Carolina to affiliates of Northland Investment Corporation.

Northland assumed, extended and modified $108 million in existing financing from Barclays Capital Real Estate to finance the purchase. Tarragon is continuing to guarantee repayment of approximately 10 percent of this loan. Tarragon has been retained to manage all six properties on behalf of the Northland entities and may share in future profits from the sale and operation of the properties.

William S. Friedman, Tarragon Chairman and Chief Executive Officer, said: "I am immensely pleased and still in awe of the fact that Northland completed this large and complex purchase in less than three weeks, precisely as agreed. We look forward to creating value for Northland and our shareholders from these properties and, hopefully, through other transactions in the future."

About Tarragon Corporation

Tarragon Corporation is a leading developer of multifamily housing for rent and for sale. Tarragon's operations are concentrated in the Northeast, Florida, Texas and Tennessee. To learn more about Tarragon Corporation, visit: www.tarragoncorp.com.

Forward-looking Statements

Information in this press release includes "forward-looking statements" made pursuant of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on management's expectations, estimates, projections and assumptions. Words such as "may," "expects," "anticipates," "intends," "estimates," and variations of these words and similar expressions are intended to identify forward-looking statements, which include statements regarding the possibility and timing of future profits from the sale and operation of recently sold properties or future transactions with Northland, and the timing of any updates on the progress of restructuring and Tarragon's year-end financial condition. Actual results and the timing of certain events could differ materially from those projected or contemplated by these forward-looking statements due to a number of factors, including conditions in the homebuilding industry, the residential real estate and mortgage markets and the capital and financial markets generally, general economic conditions, interest rates and other risk factors outlined in Tarragon's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2006 and any subsequently filed Quarterly Reports on Form 10-Q. Tarragon assumes no responsibility to update forward-looking information contained in this press release.

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Contact Information

  • Contacts:

    Broadgate Consultants, LLC
    Alan H. Oshiki
    (212) 232-2222
    Email Contact


    Tarragon Corporation
    William S. Friedman
    (212) 949-5000
    Email Contact