CLEVELAND, Nov. 4, 2003 (PRIMEZONE) -- Paragon Real Estate Equity and Investment Trust (AMEX:PRG) today announced that it completed the refinancing of Richton Trail Apartments, located in Richton Park, Illinois, a Chicago suburb. It also announced the onset of its value-added business plan.
The new financing is a non-recourse mortgage of approximately $2.8 million that was provided by KeyBank Real Estate Capital. The 10-year loan bears a fixed interest rate of 5.87%. Paragon received approximately $1.3 million in net proceeds from the financing.
Paragon's business plan reflects a value-added approach to real estate investing. The Trust will seek to acquire real estate, such as underperforming multifamily properties, with significant potential for increased value by capitalizing on the redevelopment expertise of Paragon's senior management. Paragon intends to raise equity for this plan primarily through joint ventures with institutional partners and will leverage the equity with non-recourse financing.
Forward-Looking Statements
Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Paragon Real Estate Equity and Investment Trust believe the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that the planned implementation of a national real estate acquisition strategy will be completed in whole or in part. Factors that could cause actual results to differ materially from Paragon's expectations include changes in local or national economic or real estate conditions, the ability to meet competition, loss of existing key personnel, ability to hire and retain future personnel and other risks detailed from time to time in Paragon's SEC reports and filings, including its annual report on Form 10-K/A, quarterly reports on Form 10-Q and periodic reports on Form 8-K. Paragon assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.