Contact Information: Contact: Resource America, Inc. www.resourceamerica.com pkamdar@resourceamerica.com
Resource Real Estate Receives Loan Payoff on Legacy Portfolio Loan
| Source: Resource America, Inc.
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.