14-Acre Land Buy To Spur Mixed-Use Project

In a prepared statement, Roberts says his firm paid a related company, Roberts Properties Peachtree Dunwoody LLC, $3.3 million or $227,586 per acre ($5.22 per sf) for the prime developable tract directly across GA 400 from the 1.5-million-sf North Point Mall and Office Park owned by Chicago-based General Growth Properties Inc. The 14.5 acres are adjacent to 29.5 acres Roberts acquired in December 2004, as GlobeSt.com previously reported.

The property is located between Haynes Bridge Road and Mansell Road within the 220-acre, master-planned Westside development. The acquisition is part of a Section 1031 tax-deferred exchange. To do the deal, Roberts Realty used a portion of the proceeds from the May sale of the company's Ballantyne Place community in Charlotte, NC.

Roberts says the acquisition includes a right of first refusal from Atlanta-based Cousins Properties Inc. to acquire an adjacent seven-acre parcel zoned for 105 residential units.

The Westside project will comprise an undetermined amount of condominiums, office, retail, university education, retirement housing, a possible Marta station and Encore Park for the Arts, a 27-acre arts complex that will encompass a performing arts center and a 12,000-seat amphitheater, says Roberts who is his company's founder and CEO.

Roberts says his firm paid the same amount for the 14.5 acres as Roberts Properties Peachtree Dunwoody did when it bought the land on March 25 of this year from Cousins for $3.26 million. That price included closing costs and carrying costs of $44,000 during the period Roberts Properties Peachtree Dunwoody owned the land.

Roberts says his company "has experienced negative operating cash flow, as a result of selling seven appreciated communities totaling 1,479 units in 2003 and 2004, while making distributions to shareholders of $5.05 per share." He says his company "expects the negative operating cash flow to continue through the end of 2006 and until its new communities are constructed and leased." Because of its cash-flow status, Roberts says his company "does not intend to pay distributions to shareholders in 2005 and 2006."

Roberts Realty owns 868 apartment units in various phases of development. The portfolio includes 220 apartment homes on Northridge Parkway, 292 homes on Peachtree Parkway and 236 apartments and 120 condominiums on Peachtree Dunwoody Road, all in metro Atlanta.

In an unrelated event, Greg M. Burnett, chief financial officer of Roberts Realty, is resigning Aug. 12. Charles Roberts' prepared statement didn't explain why Burnett was resigning. Roberts and Burnett couldn't be reached by GlobeSt.com's publication deadline for additional information.

Michael A. Quinlan, vice president, secretary and controller for Roberts Realty, will take Burnett's position. Quinlan joined Roberts Realty in April of this year after leaving Cousins Properties where he was senior vice president and chief accounting officer.