PHILADELPHIA--(BUSINESS WIRE)--Today, Resource Real Estate Opportunity REIT (“Resource REIT”), a non-traded real estate investment trust (“Resource REIT”) sponsored by Resource Real Estate, Inc. ("Resource Real Estate" or "RRE"), announced that it has entered into an Agreement and Plan of Merger to acquire Paladin Realty Income Properties, L.P. (“Paladin OP”), the operating partnership of and entity through which Paladin Realty Income Properties, Inc. (“Paladin”), a non-traded REIT focusing on multifamily investments, owns its real estate investments. Consideration for the merger has been agreed upon at $52.7 million, excluding closing costs and subject to certain price adjustments.
Paladin OP currently owns equity interests with certain priority rights in 12 distinct real estate joint ventures with operating partners (one of the properties owned by the joint ventures is under contract to be sold prior to effecting the merger). Thus, the assets to be acquired by Resource REIT are expected to consist of 10 multifamily assets totaling 2,513 units and two office properties that contain 75,518 rentable square feet. They include: Champion Farms (Louisville, KY), Fieldstone (Woodlawn, OH), Coursey Place (Baton Rouge, LA), Hilltop (Kansas City, MO), Pheasant Run (Lee’s Summit, MO), Retreat at Shawnee (Shawnee, KS), Pinehurst (Kansas City, MO), Pines of York (Yorktown, VA), Stone Ridge (Columbia, SC), Conifer Crossing (Norcross, GA) as well as two office buildings, Two and Five Governor Park (San Diego, CA).
Upon completion of the merger, Resource REIT will own all of Paladin OP’s interests in the joint ventures and will own a majority interest in nine of them. Resource REIT looks forward to a successful closing and the implementation of an active asset management program in line with the other 27,000 multifamily units that RRE and its affiliates oversee.
About Resource Real Estate
Resource Real Estate is a firm that specializes in direct real estate investments, commercial real estate lending and global real estate securities. For over two decades, RRE and its affiliates have managed real estate assets for institutional and individual investors. RRE and its parent company have offices in New York, Los Angeles, London, Singapore as well as its headquarters in Philadelphia and additional locations across the U.S.
RRE owns and manages real estate assets with an aggregate value of approximately $1.8 billion. RRE is a wholly owned subsidiary of Resource America (NASDAQ: REXI). As of March 31, 2013, Resource America managed $15.3 billion across various asset classes.