First Capital RE Trust Inc. made a second amendment to its interest contribution agreement with Presidential Realty Corp..
On March 31, First Capital transferred 66% of its 92% ownership interest in Township Nine Owner LLC to a subsidiary of Presidential Realty's wholly owned operating partnership. Township Nine Owner indirectly owns a 63-acre mixed-use development project in downtown Sacramento, Calif., which is expected to include high-rise residential, office, hotel and retail properties, according to a release.
In exchange, the operating partnership agreed to issue 32,649,000 of its units to First Capital, subject to certain conditions, such as a new appraisal of the transferred interest and an extension or refinancing of the mortgage debt secured by the project.
The second amendment also stipulates that Serge Kasarda and Richard Shea will be elected to fill two of its vacancies on the Presidential Realty board, and that Kasarda will be appointed to lead a new management team at Presidential, subject to board approval. In relation to the amendment, the company's board approved a business strategy to look for healthcare investment opportunities, according to the same release.
In January, First Capital turned over its indirect ownership interests in Avalon Jubilee LLC in exchange for 4,632,000 units of limited partnership interest in Presidential's operating partnership. Avalon Jubilee owns 251 noncontiguous single-family residential lots and a 10,000 square-foot clubhouse within the Jubilee at Los Lunas subdivision in Los Lunas, New Mexico.