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November 23, 2004

Belfonti Associates, LLC Completes $2.8 Million Dollar Acquisition of Phoenix Apartments

HAMDEN, CT - Michael Belfonti, President and CEO of Belfonti Associates, LLC, announced today the acquisition of Phoenix Apartments, a 328-unit garden-style apartment complex in Indianapolis, Indiana, for $2.8 million dollars, by RCM Phoenix Partners, LLC, a Belfonti-related entity, from Avondale Phoenix Limited Partnership. The transaction closed on November 23, 2004.

"Phoenix Apartments is an ideal turn-around candidate, and that is our company's specialty," said Belfonti. He explained that when the property was originally built in 1953, demand for conventional, market-rate housing in the area was high; however, by the 1970's the area had begun to deteriorate to a great extent.

By 1976 the apartment complex had entered into a long-term Section 8 Housing Assistance Payment Contract with HUD for 264 of its 328 units. Over the years the physical facility also began to deteriorate due to a lack of ongoing maintenance and security at the site. Eventually, the property went into public foreclosure.

Belfonti said that he plans a major renovation and stabilization of the newly acquired Phoenix Apartments. His capital improvement program will entail putting approximately two million dollars into the interiors and common areas of the property.

"In addition to the renovations, we intend to implement a significant security program and to control expenses in order to make sure the asset is stabilized," said Belfonti. "With our management experience and expertise, we expect to reposition the asset within 12 to 18 months," said Belfonti.

 

Belfonti Companies, LLC Real Estate Development and Investment, with a central office located in Hamden, Connecticut, actively and aggressively pursues opportunities throughout the United States and internationally.