roberts realty investors inc (RPI) Snapshot

Roberts Realty Investors Inc. operates its business through Roberts Properties Residential, L.P. On May 22, 2013, Northridge Parkway, LLC, a wholly owned subsidiary of Roberts Properties Residential, L.P., extended the maturity date of its $2,000,000 loan with Paul J. A. van Hessen, the lender, to August 22, 2013, in accordance with the extension option in the Loan Modification Agreement effective as of the 21st day of February, 2013. The loan continues to be secured by the Northridge property, which is located in Sandy Springs, Georgia and is under contract to be sold for $4,373,789. The loan continues to bear interest at the rate of 12% per annum, and at the closing of the extension, it prepaid the $60,000 in interest that will accrue during the extension period and paid a 1.0% extension fee. The loan documents also contain customary representations, covenants, and default provisions, and continue to be guaranteed by both Roberts Properties Residential, L.P. and Roberts Realty Investors Inc.

On February 7, 2013, Roberts Realty Investors Inc. sold its 20-acre Peachtree Parkway land parcel.  Using the proceeds of that sale, they repaid $7,000,000 loan with Wells Fargo Bank, N.A., which was scheduled to mature on April 13, 2013.  Under the terms of the loan, they were required to make monthly payments of interest only at the 1-month LIBOR index rate plus 300 basis points, with an interest rate floor of 5.00% per annum. The loan was secured by Peachtree Parkway property and by North Springs property.

On January 30, 2013, Roberts Realty Investors Inc. renewed its $2,905,000 Highway 20 land loan and extended the maturity date to October 8, 2013.  The loan is secured by its Highway 20 property, which is zoned for 210 multifamily units and located in Cumming, Georgia less than a mile from the downtown area, which provides schools, shopping, restaurants and other entertainment and educational venues. The loan modification was subject to the lender’s review of a new appraisal of the Highway 20 property, which had a total appraised value of $6,100,000 or $29,048 per multifamily unit, including $5,000 per unit for the value of the previously paid sewer tap fees, resulting in a loan to value ratio of 48%.  As part of the loan extension and due to the increase in the appraised value of the Highway 20 property, the lender waived the scheduled requirement that the company make a one-time principal reduction in the amount of $300,000 by February 15, 2013.  The loan continues to require fixed principal payments of $5,000 per month through the maturity date, and the company established an $80,500 interest reserve to pay the monthly interest payments at the prime rate with a floor of 5.5% per annum.