The Company also announced that in connection with the transaction it
has fully repaid the $33.0 million outstanding balance of the
Bellemeade project development loan to Bank of America and entered
into loan modifications regarding all of its other loans with Bank of
America. The loan modifications extend the maturities of the
Company's remaining loans from Bank of America into 2008 and reduce
the principal curtailment requirements due from the Company in 2007.
Comstock expects to generate $1.5 million in cash from the Bellemeade
sale and will incur an additional write off of approximately $2.0
million associated with the transaction.
In addition, the Company announced that it had received certificates
of occupancy for floors one through seven of the second high-rise
condominium building at the Eclipse at Potomac Yard project and has
begun settlements with condominium purchasers.
"The strength of the rental property market in the Washington, DC
area made it possible to quickly reposition the Bellemeade property
as a rental apartment complex so that we could maximize the value of
the property upon sale," said Christopher Clemente, Chairman and CEO.
"The Bellemeade sale and other land sales accomplished this quarter
are part of our previously announced goal of enhancing our balance
sheet by reducing our leverage, reducing our long-term interest
expenses and relieving short-term liquidity demands."
"Additionally, we have made significant progress on the Eclipse
project and have begun settlements with purchasers of units in the
second and final high rise condominium building," said Clemente. "As
with previous periods we anticipate releasing specific information
regarding 2nd quarter sales and settlement accomplishments in early
July."
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies is a diversified
real estate development firm with a focus on moderately priced
for-sale residential products. Comstock builds and markets
single-family homes, townhouses, mid-rise condominiums, high-rise
condominiums, mixed-use urban communities and active adult
communities. The company currently markets its products under the
Comstock Homes brand in the Washington, D.C.; Raleigh, North
Carolina; and Atlanta, Georgia metropolitan areas. Comstock develops
mixed-use, urban communities and active-adult communities under the
Comstock Communities brand. Comstock Homebuilding Companies, Inc.
trades on Nasdaq under the symbol CHCI. For more information on the
Company or it projects please visit
http://www.comstockhomebuilding.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking" statements that are made
pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are predictive in
nature, that depend upon or refer to future events or conditions, or
that include words such as "may," "will," "expects," "projects,"
"anticipates," "estimates," "believes," "intends," "plans," "should,"
"seeks," and similar expressions, including statements related to
Comstock's expected future financial results and anticipated growth
in the Washington, D.C. housing market, are forward-looking
statements. Forward-looking statements involve known and unknown
risks and uncertainties that may cause actual future results to
differ materially from those projected or contemplated in the
forward-looking statements. These risks and uncertainties include,
but are not limited to, economic, market and competitive conditions
affecting Comstock and its operations and products, risks and
uncertainties relating to the market for real estate generally and in
the areas where Comstock has projects, the availability and price of
land suitable for development, materials prices, labor costs,
interest rates, Comstock's ability to service its significant debt
obligations, fluctuations in operating results, anticipated growth
strategies, continuing relationships with affiliates, environmental
factors, government regulations, the impact of adverse weather
conditions or natural disasters and acts of war or terrorism.
Additional information concerning these and other important risks and
uncertainties can be found under the heading "Risk Factors" in the
prospectus from Comstock's initial public offering, as filed with the
Securities and Exchange Commission on December 15, 2004. Comstock
specifically disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future developments or otherwise.
Media Contact:
Bryan Murray
Email Contact
703.230.1450
SOURCE: Comstock Homebuilding Companies, Inc.