NRES moving on the news...
National Residential Properties, Inc. Closes On Hebron, Connecticut
80 Unit Condo Site; Gross Revenues Projected At $16,000,000
FRIDAY, MAY 04, 2001 8:47 AM
- BusinessWire
MIAMI, May 4, 2001 (BUSINESS WIRE) -- Richard Astrom, President and CEO of National
Residential Properties, Inc. (OTCBB:NRES.OB) (Formerly:NRPI.OB) announced today that:
"NRES has closed and taken title to a 80 unit condominium site located in Hebron,
Connecticut. The company plans to build a community where the residents will be fifty-five
years of age and over. The site encompasses 44 acres and the company paid $450,000.
NRES will joint venture with CT Adult Condominiums LLC. The 80 condominiums will be built,
2 units per building and the units will sell for approximately $200,000. The net expected profit
per home built and sold should average $40,000 per unit on this project." Astrom stated that:
"he is pleased to be associated with Nathan Kahn, an experienced developer in New York
and Connecticut. Mr. Kahn has a PhD from Columbia University in Business Administration
and has taught at NYU Graduate School of Business, and Fordham University School of
Business. In this joint venture, NRES will take title to the land, and provide the financing and
Mr. Kahn who lives within an hour of the development sites, will provide the expertise and
daily management of the projects and interact with the municipalities thru site approval and
development."
Similar projects are under option contract and part of this venture, and are in the planning
and zoning process for the towns of New Milford, East Windsor, Granby, Watertown and
Torrington, all in Connecticut. NRES will take title when sites have approval from
municipalities for zoning, water and sewer.
Mr. Kahn 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; and B. Senior developments allow older
residents to stay in the community. Consequently, towns 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: 1. Seniors are usually cash buyers
and are relatively unaffected by changing interest rates. 2. Seniors will pay more per square
foot of housing than other homebuyers; consequently, the profit margins are generally larger.
3. 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."
"Concrete is being poured for the foundation and basement at the Conquistador Plaza Apts."
Astrom further added: "the parking basement has been excavated and in process of building
foundation; rebar steel has been installed; perimeter walls to receive forms and steel are
simultaneously being made ready for additional concrete pours." The building site is 2270
SW 32 Ave, Miami, Florida.
The purpose of this press release is to keep stockholders informed.
The company is seeking acquisitions and land for real estate developments.
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; 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.
NRES will joint venture a group of 6 Adult Communities in Connecticut with CT Adult
Condominiums LLC. The first land purchase is in Hebron, Conn. On the Hebron parcel 80
condominium units will be built, 2 units per building. Similar projects are under option
contract and part of this venture, and are in the planning and zoning process for the towns of
New Milford, East Windsor, Granby, Watertown and Torrington, all in Connecticut. NRES will
take title when sites have approval from municipalities for zoning, water and sewer.
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. |
