National Residential Properties, Inc. Contracts to Buy 20 Acres, Phase 2 Hebron, Conn., $26,000,000 Projected Sales Revenues
Conquistador Plaza: 2nd Parking Level in Progress; Eagle Trace: Lake 100%, Roads 45% Completed
TUESDAY , JUNE 26, 2001 11:09 AM
MIAMI, Jun 26, 2001 (BUSINESS WIRE) -- National Residential Properties, Inc. (OTCBB:NRES.OB); formerly (OTCBB:NRPI.OB) announced today that the company has contracted to buy 20 additional acres which will be used for 50 units, for the second phase of the Adult Retirement community that the company has planned in Hebron, Connecticut for people 55 years and above. This 20 acres and 50 units adjoins the 44 acres that the company now owns in Hebron, on which the company plans to build 80 units. The property is located in downtown Hebron, Conn. on Route 66 and Loveland Road. The development will consist of single story condominiums, two units per building. Condominiums in phase one will be priced at $175,000 to $225,000 and in phase two the units will be priced $200,000 to $225,000. The purchase price of the land in phase two is $600,000. The Hebron 130 unit project has projected sales of $26,000,000.
Similar projects, under option contract and part of this venture, are in the planning zoning process for the towns of New Milford, East Windsor, Granby, Watertown and Torrington, all in Connecticut. Title will be taken when sites have approval from municipalities for zoning, water and sewer.
Mr. Astrom, President and CEO said: "One of the fastest growing segments of the housing market is the housing needs of people over the age of fifty-five. While this is already a large portion of the population, over the next few years, all baby boomers will, hopefully, reach age fifty-five. This age group is the affluent segment of the population and providing for the their special housing needs presents a significant profit opportunity. The active adult communities developed in Connecticut have all sold very quickly. These communities range in price from the mid one hundred thousands to townhouses selling for over half a million dollars. Recently, development of retirement communities have started on Long Island in New York with some being priced in the six and seven hundred thousand dollar range. The difficulty faced by developers is that sites for active adult communities are hard to find since there are very few sites zoned for condominium development. Furthermore, any cluster development is very difficult unless town water and sewer are available to the site. Towns are anxious to have senior developments for the following reasons: A. Senior developments generate taxes but do not use town resources such as schools and police. B. Senior developments allow older residents to stay in the community. Consequently, a town will usually grant zoning changes for senior housing developments. From the developer's point of view, senior housing is profitable, lower risk product for the following reasons: A. Seniors are usually cash buyers and are relatively unaffected by changing interest rates. B. Seniors will pay more per square foot of housing than other homebuyers, consequently, the profit margins are generally larger. C. Given the difficulty to find good sites, most approved sites face little or no competition and sell very quickly. Despite the desirability and potential profitability of active adult communities, the majority of towns in the Northeast do not have any such communities due to the difficulty of finding appropriate sites."
The company has the Conquistador Plaza Apts under construction at 227 SW 32 Ave, Miami and the 2nd level of parking is under construction. Conquistador Plaza is a 60 unit apartment building.
At Eagle Trace, Vero Beach, the lake is 100% excavated, roads are 45% completed, storm drainage pipe is 50% complete and storm drainage structures are 54% complete. Eagle Trace is a 62 unit subdivision that is being developed by the company. 1/3 of the lots are on the lake. OFFSITE: Sewer pipe is being installed along Kings Highway to connect subdivision sewers to county central sewerage system. NRES is being reimbursed by county for offsite sewers.
National Residential Properties, Inc. is a public company trading on the OTC:BB under the symbol NRES.
ABOUT THE COMPANY
NRES, based in Miami, is a fully reporting company. NRES has 6 major projects where the company owns the land and is either under construction or in the plans and permitting process. The company's business is real estate development. NRES projects are: Building a 60 unit luxury apartment house in Miami known as GRANADA GRAND, upon sale the company will generate $7,000,000 revenues and $2,500,000 net income in 2002;
Building a 60 unit luxury apartment house in Miami known as CONQUISTADOR PLAZA, now under construction, generating $7,000,000 revenues upon sale, and $2,500,000 net income in 2002; CONSTRUCTION UPDATE: started construction on the 2nd level of parking at the Conquistador Plaza Apts and that the foundation for the perimeter wall is 100% complete and the steel is 100% complete for the perimeter wall around the basement at the Conquistador Plaza Apts. The building site is 2270 SW 32 Ave, Miami, Florida.
Now under construction, the company is developing a subdivision in Vero Beach, Florida, known as EAGLE TRACE. EAGLE TRACE is a heavily deed restricted, walled, gated community with a lake in the center. NRES will build houses and sell lots to other builders. The sale of the lots in EAGLE TRACE will generate $1,500,000 net income in year 2001-2002.
A 60 unit condominium project known as THE RESIDENCES AT BAY HARBOR, located on Bay Harbor Island, which will generate $12,000,000 in revenues and a $2,500,000 profit to the company in year 2002. The building is pre-sold to one buyer before being built, generating $2,500,000 profit to the company;
A 70 unit apartment house in Miami known as BARCELONA APARTMENTS, generating upon sale $8,000,000 revenues and $3,000,000 net income in 2002. ENCORE SERVICES, INC. is a licensed building contractor, and a wholly owned subsidiary, which is building the company projects thru its affiliate Encore Builders Inc. and subcontractors.
The company has authorized a stock repurchase program for up to 10% of the company common stock.
Forward-looking statements in this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the company's products, competition, completion problems, technological changes and other risks.
CONTACT: National Residential Properties, Inc., Miami
Richard Astrom, 305/573-8882
Fax: 305/573-5164
Web Page: http://www.nresp.com
URL: http://www.businesswire.com
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