NEW YORK CITY-Homebuilder Tarragon Corp., which posted strong second quarter results, is proposing to offer $100 million aggregate principal amount of its senior notes due 2011. The locally based firm will use net proceeds for the repayment of certain outstanding indebtedness and for general corporate purposes including acquisitions and investments in joint ventures.

Tarragon, which last month changed its name to Tarragon Corp., has an investment portfolio of approximately 14,000 apartments and 1.4 million sf of commercial space. The company’s total revenues were $66.7 million, up 113% over the same timeframe from last year. For the six-month period, revenues were $127.2 million, up 129% over the prior period revenues of $55.6 million.

“With the investment division’s same-store net operating income up 7.6% over the same quarter last year and homebuilding revenue up 280%, both of our divisions are now contributing strongly to our growth,” said Tarragon chair and CEO William Friedman. Since March 31, Tarragon has started five new for-sale communities representing 869 homes with a total sellout of more than $300 million. During Tarragon‘s conference call, Friedman said the company had “strong earnings.” He was eager about the performance of a number of new northeast projects–two in Hoboken, NJ, one in Edgewater, NJ and one in Warwick, NY.

In its homebuilding division sales, net income was $17.2 million. At this time last year, the company was experiencing a loss of $5 million. Tarragon’s investment division net operating income rose 17.6% in the second quarter to $16.9 million.

Tarragon now has active development and a pipeline of homes to be delivered over the next four years that total over $1.8 billion. In May, the company acquired 200 Fountain St., a 157-unit rental community in New Haven, CT, bringing its Connecticut portfolio to 2,707 apartments in 14 communities. The following month, Tarragon sold Landmark Apartments, a 128-unit rental apartment community in Tallahassee, FL, for $4.8 million, recognizing a gain on sale of $2.7 million.

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