LOUISVILLE, KY - NTS Realty Holdings Limited Partnership announced that it completed the acquisition of a multifamily property located in Sanford, Florida (near Orlando, Florida in Seminole County), commonly known as Plantation Lakes Apartments (the "Property"). The Property is a 362-unit luxury apartment complex located on 31.62 acres offering garden style units that feature large floor plans, private entry units, 9 and 10 foot ceilings, direct access garages and detached garages. In addition, the property offers its residents access to a clubhouse with a business center, fitness center, swimming pool, sundeck, and an indoor basketball court.
Source: NTS Realty Holdings
On December 3, 2010, the Company entered into an agreement to acquire the Property. On December 9, 2010, the Company formed LE Central Holdings, LLC ("LE Central"), a Delaware limited liability company and wholly owned subsidiary of the Company, and LE Central formed Lakes Edge Apartments, LLC ("Lakes Edge"), a Delaware limited liability company wholly owned by LE Central. Lakes Edge purchased the Property from CORAC, LLC, a Delaware limited liability company not affiliated with the Company. LE Central will serve as the sole manager of Lakes Edge. Lakes Edge has appointed NTS Management Company, an affiliate of the Company, as the property manager for the Property. The Company intends to market the Property as "Lakes Edge Apartments" on a going forward basis.
The Company paid a purchase price of $37.075 million to acquire the Property. A spokesperson for the Company indicated that the Company satisfied the purchase price with funds obtained from a $24.5 million short-term mortgage loan from PNC Bank, National Association, from working capital and from proceeds from the Company's sale in June, 2010 of its Sears office building. The spokesperson also indicated that the transaction was being conducted pursuant to an Exchange Agreement with a qualified intermediary as a transaction under Section 1031 of the Internal Revenue Code which is intended to allow the Company to defer the payment of income tax on any taxable gain related to the sale of its Sears office building.
Brian Lavin, the President and Chief Executive Officer of the Company's managing general partner said, "We are very pleased to add this Property to our portfolio of multifamily properties. We believe that this Property will enhance our growing presence in the Orlando area and will permit us to further leverage the expertise of our management team in the Orlando area apartment market."
The Company directly, as a tenant in common with unaffiliated co-owners, or as a majority joint venture partner with an affiliate, currently owns twenty-three properties comprised of fifteen multifamily properties, six office buildings and business centers and two retail properties. The properties are located in and around Louisville and Lexington, Kentucky, Nashville and Cordova, Tennessee, Richmond, Virginia, Fort Lauderdale and Orlando, Florida, Indianapolis, Indiana and Atlanta, Georgia. The Company's limited partnership units are listed on the NYSE Amex platform under the trading symbol of "NLP."