UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): | March 3, 2008 |
UDR, Inc.
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(Exact name of registrant as specified in its charter)
Maryland | 1-10524 | 54-0857512 |
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(State or other jurisdiction |
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(Commission |
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(I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
1745 Shea Center Drive, Suite 200, Highlands Ranch, Colorado | 80129 | |
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(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: | (720) 283-6120 |
Not Applicable
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Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.01 Completion of Acquisition or Disposition of Assets.
As previously reported in its Current Report on Form 8-K dated March 3, 2008, filed with the Securities and Exchange Commission ("SEC") on March 7, 2008 (Commission File No. 1-10524), on March 3, 2008, UDR, Inc. (the "Company"), and certain of its subsidiaries and controlled affiliates (collectively, the "Sellers"), completed the sale of 84 multi-family apartment communities to DRA Fund VI LLC (the"Buyer"), pursuant to an Agreement of Purchase and Sale dated January 23, 2008 (the "Purchase and Sale Agreement"). Under the terms of the Purchase and Sale Agreement, the Sellers agreed to sell to the Buyer 86 multi-family apartment communities located in Arkansas, Delaware, Florida, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Texas, Virginia and Washington (the "Portfolio Properties").
This Current Report on Form 8-K/A is being filed to report that on May 1, 2008, the Sellers completed the sale of one of the remaining two apartment communities, Andover Place, pursuant to the terms of the Purchase and Sale Agreement. As consideration for the sale of Andover Place on May 1, 2008, the Company received cash proceeds of approximately $27.7 million. The closing of the last remaining apartment community, Dominion at Sharon, is expected to occur within ninety days from May 1, 2008, in order to allow the Buyer additional time to satisfy a lender requirement.
The foregoing description of the sale of the Portfolio Properties does not purport to be complete and is qualified in its entirety by the complete text of the Purchase and Sale Agreement, as amended by the First Amendment to Agreement of Purchase and Sale, a copy of which is attached to this report as Exhibit 2.2 and is incorporated herein by reference. A copy of the Purchase and Sale Agreement was previously filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K dated January 23, 2008 and filed with the SEC on January 29, 2008 (Commission File No. 1-10524), and is incorporated herein by reference.
Unaudited pro forma consolidated financial information relating to the sale of the Portfolio Properties was previously filed as Exhibit 99.1 to our Current Report on Form 8-K dated March 3, 2008, and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(b) Pro Forma Financial Information.
The following pro forma financial information of the Company with respect to the sale of the Portfolio Properties was previously filed as Exhibit 99.1 to our Current Report on Form 8-K dated March 3, 2008 and filed with the SEC on March 7, 2008 (Commission File No. 1-10524), and is incorporated herein by reference.:
• Unaudited Pro Forma Consolidated Balance Sheet as of December 31, 2007
• Unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2007
• Notes to Unaudited Pro Forma Consolidated Financial Statements
(d) Exhibits.
Ex. No. - Description
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2.1 - Agreement of Purchase and Sale dated January 23, 2008, by and between the Company, DRA Fund VI LLC and the other signatories thereto (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K dated January 23, 2008 and filed with the SEC on January 29, 2008 (Commission File No. 1-10524)).
2.2 - First Amendment to Agreement of Purchase and Sale by and between the Company, DRA Fund VI, LLC and the other signatories thereto.
99.1 - Unaudited Pro Forma Consolidated Financial Statements of the Company as of and for the year ended December 31, 2007 (incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K dated March 3, 2008 and filed with the SEC on March 7, 2008 (Commission File No. 1-10524)).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UDR, Inc. | ||||
May 2, 2008 | By: |
David L. Messenger
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Name: David L. Messenger | ||||
Title: Senior Vice President and Chief Accounting Officer |
Exhibit Index
Exhibit No.
Description
First Amendment to Agreement of Purchase and Sale by and between the Company, DRA Fund VI, LLC and the other signatories thereto.
Exhibit 2.2
FIRST AMENDMENT TO AGREEMENT OF PURCHASE AND SALE
This First Amendment to Agreement of Purchase and Sale (First Amendment) is made and entered into on this 14th day of February, 2008, by and between UDR, Inc., a Maryland corporation, United Dominion Realty, L.P., a Delaware limited partnership, UDR Texas Properties LLC, a Delaware limited liability company, UDR Western Residential, Inc., a Virginia corporation, UDR South Carolina Trust, a Maryland business trust, UDR Ohio Properties, LLC, a Virginia limited liability company, UDR of Tennessee, L.P., a Virginia limited partnership, UDR of NC, Limited Partnership, a North Carolina limited partnership, Heritage Communities L.P., a Delaware limited partnership, Governours Square of Columbus Co., an Ohio limited partnership, Fountainhead Apartments Limited Partnership, an Ohio limited partnership, AAC Vancouver I, L.P., a Washington limited partnership, AAC Funding Partnership III, a Delaware general partnership, and AAC Funding Partnership II, a Delaware general partnership (each a Seller and collectively, the Sellers) and DRA Fund VI LLC, a Delaware limited liability company (Purchaser).
RECITALS
WHEREAS, Sellers and Purchaser entered into that certain Agreement of Purchase and Sale dated as of January 23, 2008 (Agreement), with respect to those certain parcels of real property owned by Sellers and identified in said Agreement; and
WHEREAS, Purchaser and Sellers have agreed to amend the Agreement as set forth herein.
NOW, THEREFORE, in consideration of the above recitals, the mutual covenants and agreements herein set forth and the benefits to be derived therefrom, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Sellers and Purchaser agree as follows:
1. Settlement . Section 7.01 of the Agreement is hereby deleted in its entirety and replaced with the following:
Closing of the transaction contemplated by this Agreement (such action, Settlement) shall be held through the Escrow Agent on March 3, 2008 or such earlier date as the parties may otherwise mutually agree; provided that closing with respect to those certain Portfolio Properties known as Andover Place and Dominion at Sharon shall be held through the Escrow Agent on May 1, 2008 or such other date as the parties may otherwise mutually agree. Possession of the Property shall be delivered to Purchaser at Settlement, subject only to the Permitted Exceptions. Notwithstanding the foregoing, Purchaser shall have the right to adjourn Settlement for up to ninety (90) days in the event Purchasers lender is not prepared to close its loan to Purchaser, other than as a result of Purchasers acts or omissions, on the date originally scheduled for Settlement.
2. Andover Place .
(a) Sellers shall redeem the bonds currently outstanding with respect to that certain Portfolio Property known as Andover Place prior to May 1, 2008. Seller represents and acknowledges and agrees that the redemption of such bonds will terminate that certain Amended and Restated Land Use Restriction Agreement dated as of July 1, 1996 and recorded at Book 5091, Page 2994 of the land records of Orange County, Florida (the FHFA Use Restriction) and therefore terminate the necessity to obtain the approval of the Florida Housing Finance Authority to the transfer of Andover Place to Purchaser. Seller acknowledges that the FHFA Use Restriction is a Non-Permitted Title Objection and Seller shall cause the Title Company to omit same from Purchasers (and its lenders) title policy issued at Settlement, which shall include providing a document, in recordable form, which shall evidence the termination of the FHFA Use Restriction of record.
(b) Seller represents and acknowledges and agrees that the Amended and Restated Land Use Restriction Agreement, dated June 1, 1998, recorded June 25, 1998, in O.R. 5511, Page 2188 of the land records of Orange County, Florida will terminate on March 21, 2008 (the Orange County LURA) and therefore terminate the necessity to obtain the approval of the Orange County Housing Authority to the transfer of Andover Place to Purchaser. Seller acknowledges that the Orange County LURA is a Non-Permitted Title Objection and Seller shall cause the Title Company to omit same from Purchasers (and its lenders) title policy issued at Settlement, which shall include providing a document, in recordable form, which shall evidence the termination of the Orange County LURA of record.
3. Dominion at Sharon . Seller and Purchaser acknowledge and agree that the US Department of Housing and Urban Development (HUD) must consent to the transfer of Dominion at Sharon from Seller to Purchaser. Purchaser shall submit to the US Department of Housing and Urban Development a 2530 certificate and provide HUD with such other information that may be required by HUD regarding Purchaser and its proposed property manager and take such other actions as may be required of Purchaser pursuant to the Use Agreement and HUD regulations in order to secure HUDs consent to the transfer of Dominion at Sharon to Purchaser. Seller shall deliver such other items and take such other actions as may be required of Seller pursuant to the Use Agreement and HUD regulations in order to secure HUDs consent to the transfer of Dominion at Sharon to Purchaser.
4. Title Defects . Purchaser and Seller acknowledge and agree that subject to the provisions of Sections 2 and 3 above, the Title Defects identified in the letter dated February 1, 2008 from Blank Rome LLP, as counsel to Purchaser, to Sellers are hereby waived.
5. Effect of Amendment . Except as specifically provide in this First Amendment, the terms and provisions of the Agreement remain in full force and effect. All capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Agreement.
6. Governing Law . This First Amendment shall, in all respects, be governed, construed, applied, and enforced in accordance with the law of the State of New York.
7. Counterparts, Facsimile . This First Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one agreement. To facilitate execution of this First Amendment, the parties may execute and exchange by telephone facsimile counterparts of the signature pages, which facsimile shall be deemed an original.
[The remainder of this page is intentionally blank.]
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IN WITNESS WHEREOF, the parties have caused this First Amendment to be executed by their respective duly authorized representatives as of the date hereinabove set forth.
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Sellers:
AAC FUNDING PARTNERSHIP II,
a Delaware general partnership By: AAC FUNDING II, INC., a Delaware corporation, its Managing Partner By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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AAC FUNDING PARTNERSHIP III,
a Delaware general partnership By: United Dominion Realty, L.P., a Delaware limited partnership, its Managing Partner By: UDR, Inc., a Maryland corporation, its General Partner By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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AAC VANCOUVER I, L.P.,
a Washington limited partnership By: United Dominion Realty, L.P., a Delaware limited partnership, its General Partner By: UDR, Inc., a Maryland corporation, its General Partner By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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FOUNTAINHEAD APARTMENTS LIMITED
PARTNERSHIP, an Ohio limited partnership By: United Dominion Realty, L.P., a Delaware limited partnership, its General Partner By: UDR, Inc., a Maryland corporation, its General Partner By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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GOVERNOURS SQUARE OF COLUMBUS CO.,
an Ohio limited partnership By: United Dominion Realty, L.P., a Delaware limited partnership, its General Partner By: UDR, Inc. a Maryland corporation, its General Partner By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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HERITAGE COMMUNITIES L.P.,
a Delaware limited partnership By: ASR of Delaware LLC, a Delaware limited liability company, its General Partner By: ASR Investments Corporation, a Maryland corporation, Sole Member By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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UDR of NC, LIMITED PARTNERSHIP,
a North Carolina limited partnership By: UDRT of Delaware 4 LLC, a Delaware limited liability company, its General Partner By: United Dominion Realty, L.P., a Delaware limited partnership, its Sole Member By: UDR, Inc., a Maryland corporation, its General Partner By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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UDR OF TENNESSEE, L.P.,
a Virginia limited partnership By: UDR, Inc., a Maryland corporation, its General Partner By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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UDR OHIO PROPERTIES, LLC,
a Virginia limited liability company By: UDR, Inc., a Maryland corporation, its Sole Member By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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UDR SOUTH CAROLINA TRUST,
a Maryland business trust By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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UDR TEXAS PROPERTIES LLC,
a Delaware limited liability company By: UDR Western Residential, Inc., a Virginia corporation, its Managing Member By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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UDR WESTERN RESIDENTIAL, INC.,
a Virginia corporation By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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UDR, INC.,
a Maryland corporation By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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UNITED DOMINION REALTY, L.P.,
a Delaware limited partnership By: UDR, Inc., a Maryland corporation, its General Partner By: /s/ W. Mark Wallis |
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W. Mark Wallis
Senior Executive Vice President |
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Purchaser:
DRA FUND VI LLC,
a Delaware limited liability company
By: /s/ Jean Marie Apruzzese |
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Name: Jean Marie Apruzzese
Title: Vice President |
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