On July 29, the chief reason for Orleans' departure from PREIT's board became apparent. Orleans Homebuilders acquired Yardley, PA-based Realen Homes for $60 million in a split of $55 million in cash and a $5-million purchase money note. With completion of the acquisition, Orleans' 2005 revenues are expected to exceed $800 million.
Both residential builders develop communities containing a mix of single-family and multifamily units. There are Realen communities throughout the five counties surrounding Philadelphia and in the Chicago area. Orleans has operations in six states: Pennsylvania, New Jersey, North and South Carolina, Virginia and Florida. Of the acquisition, Orleans says, "It greatly expands our presence in Pennsylvania and allows us to enter the Greater Chicago market … something which we have been eager to do."
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