SOURCE: Resource America, Inc.

Resource America, Inc.

March 02, 2009 15:25 ET

Resource Real Estate Receives Loan Payoff on Legacy Portfolio Loan

PHILADELPHIA, PA--(Marketwire - March 2, 2009) - Resource Real Estate, Inc. (the "Company"), a subsidiary of Resource America, Inc. (NASDAQ: REXI), announced today that it received $8.7 million from the payoff of a mezzanine loan that the Company had held in its legacy portfolio of resolved distressed investments. The loan originally resulted from a mezzanine position retained by the Company when a distressed first mortgage loan it had acquired in 1998 was restructured in 1999. The Property underlying the loan is a multifamily apartment complex in Hartford, Connecticut, that was refinanced on February 27, 2009. The Company will recognize a pre-tax gain of approximately $1.0 million associated with this transaction in the quarter ending March 31, 2009.

Alan Feldman, CEO of Resource Real Estate, Inc., commented that, "We are very pleased by this loan repayment as it demonstrates the skills that we have in acquiring, structuring and managing distressed assets. We believe that our long and successful experience in working with distressed loans is valuable as we seek new distressed investments. We are also pleased that this sizable cash payment lets us further deleverage our balance sheet and position the Company to participate in opportunities that arise from today's market dislocations."

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 $1.7 billion in assets under management as of December 31, 2008. RRE offers investment programs that acquire stable income-generating multifamily real estate assets and also discounted real estate loans throughout the U.S. RRE currently manages or supervises management of more than 17,000 multifamily units.

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.

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